Jurisdiction(s):
United Kingdom

Key definition

Joint venture definition

What does Joint venture mean? In legal practice, a joint venture is a collaborative arrangement in which two or more parties pool assets, finance, IP or know‑how to carry on a specific project or an ongoing business, sharing control, risks, profits and losses (including equity and revenue where an entity is formed). It is a descriptive term rather than one defined by statute across England & Wales, Scotland, Northern Ireland and Ireland, though used in competition, tax and accounting contexts. Structures commonly include: (i) an incorporated joint venture (usually a private company limited by shares) with rights documented in a shareholders’ agreement and...

UK tax treatment of joint venture partnerships: operation, funding and termination (profits and losses, loan relationships, capital gains, stamp duty, SDLT/LBTT/LTT and VAT)

Published by a LexisNexis Tax expert

Practice notes

This Practice Note examines UK tax considerations for the operation and termination of a joint venture conducted through a partnership. For the purposes of this note, it is assumed that:

the joint venture parties are UK tax resident corporate entities
the joint venture partnership vehicle is also UK tax resident, and
the venture’s activities are undertaken in the UK

For information on:

the establishment of a joint venture partnership, see Practice Note: Tax implications of establishing a joint venture partnership, and
joint ventures with a non-UK element, see Practice Note: Tax implications of international joint ventures

This Practice Note does not address certain investment partnerships that are unit trust schemes which may not be treated as transparent for tax purposes.

Tax implications of operating a joint venture partnership

In broad terms, a joint venture partnership operates in the same manner as any other partnership, since partnerships are, by definition, joint undertakings. Accordingly, what follows are concise summaries of the tax consequences of running a joint venture partnership, with cross-references to more detailed Practice Notes where relevant...

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Arun Birla

Paul Hastings LLP

Arun Birla is a partner in the Tax practice of Paul Hastings. Mr. Birla advises UK and international clients on transactions involving M&A, private equity, investment funds, structured and asset finance, joint ventures, financing arrangements, corporate mergers, demergers, reorganisations, and restructurings. Author of: UK taxation of parties in securitisation transactions...

Hannah Gray

Paul Hastings LLP

Hannah Gray is an associate in the Tax practice of the London office of Paul Hastings. She has advised a number of UK based and international clients on structuring of financial products as well as on the corporate and tax (both direct and indirect tax) implications of a broad range of transactions covering M&A, private equity, investment funds and financing arrangements. Author of: UK taxation of parties in securitisation transactions...

Abigail Hung

Paul Hastings LLP

Web page updated on 22/05/2026

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