What Is a Joint Venture?

A joint venture is a commercial enterprise undertaken by two or more parties who otherwise retain their separate identities. The parties to the joint venture usually bring together different resources and areas of expertise to help fulfil a specific project.

HMRC makes the point that on close examination of these associations prove to be partnerships, despite the name applied to them. The manuals state that a joint venture, which is not a partnership, is most likely to be found where parties already carrying on businesses of their own agree to co-operate in a single project, but they do not agree to share net profits or losses. Where they do agree to share net profits or losses, it is likely that a partnership will result even where the parties are already engaged in their own businesses.

For a partnership to exist, there must be a business and that must be a business that is separate and distinct from any other business that the joint venture parties may conduct on their own account.

Posted by Cassey Nixon on

29th November 2019

Categories

  • 13-week cashflow forecast

    We have a 13-week cashflow forecast for our clients to complete. This will help you to see where you need to cut costs and show you a clearer picture of where your business is headed. We hope this helps you during these uncertain times. Covid-19 13 Week Cashflow Forecast¬†  

  • New Hardship Fund

    At the Spring Budget 2020 the Chancellor announced a new ¬£500 million Hardship Fund in England. On 24 March 2020, it was confirmed the Hardship Fund will provide council tax relief to vulnerable people and households to help those affected by Coronavirus. This means that the money will go to local authorities in England to […]