A limited partnership is one in which one or more members have limited liability provided that at least one member has unlimited liability.

When a limited partnership makes a trading loss, the partners are entitled to make a claim for relief from income tax in the same way as a partner in an ordinary partnership (see ¶62140). The limited partner’s share of the loss is restricted to the amount of his capital contribution. Only that amount can be set off against his other income (via trade loss relief against general income – see ¶6210, or as early trade loss relief – see ¶6225) or gains (see ¶6220) where the limited partner is an individual.

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