Business partnership


Your responsibilities when selling a partnership depend on whether you’re selling:

  • your share of the partnership
  • the entire partnership

Check your business’ partnership agreement - it may have restrictions and conditions on the sale.


If you have anyone working for you, you must tell them about the sale, including:

  • when and why you’re selling the partnership
  • details about the redundancy terms or relocation packages you will offer, if required

Make sure you don’t breach employees’ rights when a business changes ownership.

If you’re stopping self-employment

If you’re stopping self-employment when you sell the partnership, call HM Revenue and Customs (HMRC) to cancel your Class 2 National Insurance contributions.

VAT registration

If the partnership is registered for VAT, you may be able to transfer the VAT registration number to the new owner.

Tax returns

If you’re selling your share in the partnership
You must fill out a personal Self Assessment tax return by the deadline.

If you’re selling the whole partnership
You must:

Capital Gains Tax

You may have made a ‘capital gain’ when selling the partnership (eg the money you get from the sale, or assets from the partnership that you keep).
If this means you need to pay Capital Gains Tax, you may be able to reduce the amount by claiming Entrepreneurs’ Relief. You may also be able to claim other reliefs.