The Partnerships (Accounts) Regulations 2008

PART 1 U.K. INTRODUCTION

Citation, commencement and application U.K.

1.—(1) These Regulations may be cited as the Partnerships (Accounts) Regulations 2008.

(2) These Regulations come into force on 6th April 2008 and apply in relation to—

(a) qualifying partnerships' financial years beginning on or after that date, and

(b) auditors appointed in respect of those financial years.

Interpretation U.K.

2.—(1) In these Regulations—

[F1 “the Accounting Directive” means Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial reports of certain types of undertakings,]

“the accounts”, in relation to a qualifying partnership, means the annual accounts [F2 and reports] F3 ... required by regulation 4,

“dealt with on a consolidated basis” means dealt with by the method of full consolidation, the method of proportional consolidation or the equity method of accounting,

“financial year”, in relation to a qualifying partnership, means any period of not more than 18 months in respect of which a profit and loss account of the partnership is required to be made up by or in accordance with its constitution or, failing any such requirement, each period of 12 months beginning with 1st April,

F4 ...

“general partner” has the same meaning as in the Limited Partnerships Act 1907 M1 ,

“the Large and Medium-sized Companies Accounts Regulations” means the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 M2 ,

“limited company” means a company limited by shares or limited by guarantee,

“limited partnership” means a partnership formed in accordance with the Limited Partnerships Act 1907,

“qualifying partnership” has the meaning given by regulation 3,

F5 ...

“the Small Companies Accounts Regulations” means the Small Companies and Groups (Accounts and Directors' Report) Regulations 2008 M3 ,

and except as otherwise provided in these Regulations, words and expressions used in the Companies Act 2006 have the same meaning in these Regulations as they have in that Act.

F6 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Words in reg. 2(1) inserted (6.4.2015) by The Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015 (S.I. 2015/980), regs. 2(1), 42(2)(a)

F2 Words in reg. 2(1) substituted (1.9.2013) by The Companies and Partnerships (Accounts and Audit) Regulations 2013 (S.I. 2013/2005), regs. 1(1), 4(2)(a) (with reg. 1(5)(6))

F3 Words in reg. 2(1) omitted (1.9.2013) by virtue of The Companies and Partnerships (Accounts and Audit) Regulations 2013 (S.I. 2013/2005), regs. 1(1), 4(2)(a) (with reg. 1(5)(6))

F4 Words in reg. 2(1) omitted (6.4.2015) by virtue of The Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015 (S.I. 2015/980), regs. 2(1), 42(2)(b)

F5 Words in reg. 2(1) omitted (6.4.2015) by virtue of The Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015 (S.I. 2015/980), regs. 2(1), 42(2)(c)

F6 Reg. 2(2) omitted (1.9.2013) by virtue of The Companies and Partnerships (Accounts and Audit) Regulations 2013 (S.I. 2013/2005), regs. 1(1), 4(2)(b) (with reg. 1(5)(6))

Marginal Citations

M1 1907 c.24.

M2 S.I. 2008/410.

M3 S.I. 2008/409.

Qualifying partnerships U.K.

[F7 3.— (1) A “qualifying partnership” is a partnership formed under the law of any part of the United Kingdom each of whose members or, in the case of a limited partnership, each of whose general partners is—

(a) a limited company;

(b) an unlimited company each of whose members is a limited company;

(c) a Scottish partnership which is not a limited partnership, each of whose members is a limited company; or

(d) a Scottish partnership which is a limited partnership, each of whose general partners is a limited company.

(2) Each reference in paragraph (1) to a limited company includes a reference to any comparable undertaking incorporated in a country or territory outside the United Kingdom.

(3) The reference in paragraph (1)(b) to an unlimited company includes a reference to any comparable undertaking incorporated in a country or territory outside the United Kingdom.

(4) The reference in paragraph (1)(c) to a Scottish partnership which is not a limited partnership includes a reference to any undertaking comparable to such a Scottish partnership incorporated in or formed under the law of a country or territory outside the United Kingdom.

(5) The reference in paragraph (1)(d) to a Scottish partnership which is a limited partnership includes a reference to any undertaking comparable to such a Scottish partnership incorporated in or formed under the law of a country or territory outside the United Kingdom; and in relation to such an undertaking the reference in that paragraph to the general partners is to be construed as a reference to the members of the undertaking comparable to general partners.

(6) The requirements of these Regulations apply without regard to any change in the members (or in the members of any member) of a qualifying partnership which does not result in it ceasing to be a qualifying partnership.

Textual Amendments

F7 Regs. 3, 3A substituted for reg. 3 (1.9.2013) by The Companies and Partnerships (Accounts and Audit) Regulations 2013 (S.I. 2013/2005), regs. 1(1), 4(3) (with reg. 1(5)(6))

References to members of a qualifying partnership U.K.

3A.— (1) The references in regulations 4 to 15 to the members, or any member, of a qualifying partnership are to be construed as follows.

(2) Where the qualifying partnership is not a limited partnership its members are, for the purposes of those regulations—

(a) its members (irrespective of their place of incorporation or the law under which they were formed);

(b) where any of its members is an unlimited company, the limited companies which are the members of that unlimited company;

(c) where any of its members is a Scottish partnership which is not a limited partnership, the limited companies which are the members of that Scottish partnership; and

(d) where any of its members is a Scottish partnership which is a limited partnership, the limited companies which are the general partners of that Scottish limited partnership.

(3) Where the qualifying partnership is a limited partnership its members are, for the purposes of those regulations—

(a) its general partners (irrespective of their place of incorporation or the law under which they were formed);

(b) where any of its general partners is an unlimited company, the limited companies which are the members of that unlimited company;

(c) where any of its general partners is a Scottish partnership which is not a limited partnership, the limited companies which are the members of that Scottish partnership; and

(d) where any of its general partners is a Scottish partnership which is a limited partnership, the limited companies which are the general partners of that Scottish limited partnership.

(4) Each reference in paragraphs (2) and (3) to a limited company includes a reference to any comparable undertaking incorporated in a country or territory outside the United Kingdom.

(5) The references in paragraphs (2)(b) and (3)(b) to an unlimited company include references to any comparable undertaking incorporated in a country or territory outside the United Kingdom.

(6) The references in paragraphs (2)(c) and (3)(c) to a Scottish partnership which is not a limited partnership include references to any undertaking comparable to such a Scottish partnership incorporated in or formed under the law of a country or territory outside the United Kingdom.

(7) The references in paragraphs (2)(d) and (3)(d) to a Scottish partnership which is a limited partnership include references to any undertaking comparable to such a Scottish partnership incorporated in or formed under the law of a country or territory outside the United Kingdom; and in relation to such an undertaking the references in those paragraphs to the general partners are to be construed as references to the members of the undertaking comparable to general partners.]

Textual Amendments

F7 Regs. 3, 3A substituted for reg. 3 (1.9.2013) by The Companies and Partnerships (Accounts and Audit) Regulations 2013 (S.I. 2013/2005), regs. 1(1), 4(3) (with reg. 1(5)(6))

PART 2 U.K. PARTNERSHIP ACCOUNTS

Preparation of accounts of qualifying partnerships U.K.

4.—(1) Subject to regulation 7, the persons who are members of a qualifying partnership at the end of any financial year of the partnership must, in respect of that year—

(a) prepare the like annual accounts and [F8 reports], and

(b) cause to be prepared such an auditor's report,

as would be required, if the partnership were a company, under Part 15 (accounts and reports) and Chapter 1 of Part 16 (requirement for audited accounts) of the Companies Act 2006, and under the Small Companies Accounts Regulations or the Large and Medium-sized Companies Accounts Regulations (as the case may be).

(2) Regulations 4 to 6 of the Companies (Disclosure of Auditor Remuneration and Liability Limitation Agreements) Regulations 2008 M4 apply in relation to the accounts required by this regulation as they apply in relation to the annual accounts of a company or group.

(3) The accounts required by this regulation must—

(a) be prepared within the period of 9 months beginning immediately after the end of the partnership's financial year, and

(b) state that they are prepared under this regulation.

(4) Part 1 of the Schedule to these Regulations sets out certain modifications and adaptations for the purposes of this regulation.

Textual Amendments

F8 Word in reg. 4(1)(a) substituted (1.9.2013) by The Companies and Partnerships (Accounts and Audit) Regulations 2013 (S.I. 2013/2005), regs. 1(1), 4(4) (with reg. 1(5)(6))

Modifications etc. (not altering text)

C1 Reg. 4 applied (E.W.S.) (1.10.2018) by The Occupational Pension Schemes (Master Trusts) Regulations 2018 (S.I. 2018/1030), regs. 1(2), 9(3)

Marginal Citations

M4 S.I. 2008/489.

Delivery of accounts of qualifying partnerships to registrar etc. U.K.

5.—(1) Subject to regulation 7, each limited company which is a member of a qualifying partnership at the end of any financial year of the partnership must append to the copy of its accounts and reports which is next delivered to the registrar in accordance with section 441(1) of the Companies Act 2006 (duty to file accounts and reports with the registrar) a copy of the accounts of the partnership prepared for that year under regulation 4.

(2) Subject to regulation 7, a limited company which is a member of a qualifying partnership must supply to any person upon request—

(a) the name of each member of the partnership which is to deliver, or has delivered, a copy of the latest accounts of the partnership to the registrar under paragraph (1), and

(b) the name of each member of the partnership incorporated in a member State other than the United Kingdom which is to publish, or has published, the latest accounts for the partnership in accordance with the provisions of [F9 the Accounting Directive].

Textual Amendments

F9 Words in reg. 5(2)(b) substituted (6.4.2015) by The Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015 (S.I. 2015/980), regs. 2(1), 42(3)

Publication of accounts of qualifying partnerships at head office U.K.

6.— [F10 (1) This regulation applies where none of the members of a qualifying partnership is a limited company.

(2) But this regulation is subject to regulation 7 and does not apply where—

(a) any member of the qualifying partnership is an undertaking which is incorporated in a member State other than the United Kingdom and is comparable to a limited company; and

(b) the latest accounts of the partnership have been or are to be appended to the accounts of that undertaking and published under the law of that member State in accordance with the provisions of the Fourth or Seventh Directive.]

(3) The members of the qualifying partnership—

[F11 (a) must make the latest accounts available for inspection by any person, without charge and during business hours as follows—

(i) where a qualifying partnership has a principal place of business in the United Kingdom, at that principal place of business;

(ii) where the qualifying partnership has no principal place of business in the United Kingdom, but at least one of its members has a principal place of business or a head office in the United Kingdom, at a member’s principal place of business or head office in the United Kingdom nominated by the members of the qualifying partnership for the purposes of this regulation;

(iii) where the qualifying partnership has no principal place of business in the United Kingdom and none of its members has a principal place of business or a head office in the United Kingdom, at an address in the United Kingdom nominated by the members of a qualifying partnership, and]

(b) if any document comprised in those accounts is in a language other than English, must annex to that document a translation of it into English, certified as an accurate translation—

(i) if the translation was made in the United Kingdom, by—

(aa) a notary public in any part of the United Kingdom;

(bb) a solicitor (if the translation was made in Scotland), a solicitor of the Supreme Court of Judicature of England and Wales (if it was made in England or Wales), or a solicitor of the Supreme Court of Judicature of Northern Ireland (if it was made in Northern Ireland); or

(cc) a person certified by a person mentioned above to be known to be competent to translate the document into English; or

(ii) if the translation was made outside the United Kingdom, by—

(aa) a notary public;

(bb) a person authorised in the place where the translation was made to administer an oath;

(cc) any of the British officials mentioned in section 6 of the Commissioners for Oaths Act 1889 M5 ;

(dd) a person certified by a person mentioned above to be known to be competent to translate the document into English.

(4) A member of the qualifying partnership must supply to any person upon request—

(a) a copy of the accounts required by paragraph (3)(a) to be made available for inspection, and

(b) a copy of any translation required by paragraph (3)(b) to be annexed to any document comprised in those accounts,

at a price not exceeding the administrative cost of making the copy.

Textual Amendments

F10 Reg. 6(1)(2) substituted (1.9.2013) by The Companies and Partnerships (Accounts and Audit) Regulations 2013 (S.I. 2013/2005), regs. 1(1), 4(5)(a) (with reg. 1(5)(6))

F11 Reg. 6(3)(a) substituted (1.9.2013) by The Companies and Partnerships (Accounts and Audit) Regulations 2013 (S.I. 2013/2005), regs. 1(1), 4(5)(b) (with reg. 1(5)(6))

Marginal Citations

M5 1889 c.10.

Exemption from regulations 4 to 6 where accounts consolidated U.K.

7.—(1) The members of a qualifying partnership are exempt from the requirements of regulations 4 to 6 if the partnership is dealt with on a consolidated basis in group accounts prepared by—

(a) a member of the partnership which is established under the law of a member State, or

(b) a parent undertaking of such a member which parent undertaking is so established,

and (in either case) the conditions mentioned in paragraph (2) are complied with.

(2) The conditions are—

(a) that the group accounts are prepared and audited under the law of the member State concerned in accordance with the provisions of [F12 the Accounting Directive] or of international accounting standards, and

(b) the notes to those accounts disclose that advantage has been taken of the exemption conferred by this regulation.

(3) Where advantage is taken of the exemption conferred by this regulation, any member of the qualifying partnership which is a limited company must disclose on request the name of at least one member or parent undertaking in whose group accounts the partnership has been or is to be dealt with on a consolidated basis.

Textual Amendments

F12 Words in reg. 7(2)(a) substituted (6.4.2015) by The Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015 (S.I. 2015/980), regs. 2(1), 42(4)

Modifications etc. (not altering text)

C2 Reg. 7 excluded (E.W.S.) (1.10.2018) by The Occupational Pension Schemes (Master Trusts) Regulations 2018 (S.I. 2018/1030), regs. 1(2), 9(3)

PART 3 U.K. AUDITORS

Appointment of auditor U.K.

8.  An auditor may be appointed for the purposes of regulation 4(1)(b) only by the members of a qualifying partnership.

Modifications etc. (not altering text)

C3 Regs. 8-10 applied (E.W.S.) (1.10.2018) by The Occupational Pension Schemes (Master Trusts) Regulations 2018 (S.I. 2018/1030), regs. 1(2), 9(3)

Functions of auditor U.K.

9.—(1) The following provisions of the Companies Act 2006 apply to the auditor of a qualifying partnership as they apply to an auditor of a company—

(a) section 495 (auditor's report on company's annual accounts);

[F13 (aa) section 496 (auditor's report on strategic report and director's report);]

(b) section 498 (duties of auditor);

(c) section 499 (auditor's general right to information).

(2) The auditor of a qualifying partnership must supply the members of the qualifying partnership with such information as is necessary to enable any disclosure required by regulation 4(2) to be made.

Textual Amendments

F13 Reg. 9(1)(aa) inserted (17.6.2016) by The Statutory Auditors and Third Country Auditors Regulations 2016 (S.I. 2016/649), regs. 1(1)(a), 14(2)

Modifications etc. (not altering text)

C3 Regs. 8-10 applied (E.W.S.) (1.10.2018) by The Occupational Pension Schemes (Master Trusts) Regulations 2018 (S.I. 2018/1030), regs. 1(2), 9(3)

Signature of auditor's report U.K.

10.  Sections 503 to 506 of the Companies Act 2006 (signature of auditor's report) apply in relation to the auditor's report required by regulation 4(1)(b), subject to—

(a) any necessary modifications to take account of the fact that the qualifying partnership is unincorporated, and

(b) the modification set out in Part 2 of the Schedule to these Regulations.

Modifications etc. (not altering text)

C3 Regs. 8-10 applied (E.W.S.) (1.10.2018) by The Occupational Pension Schemes (Master Trusts) Regulations 2018 (S.I. 2018/1030), regs. 1(2), 9(3)

Removal of auditors on improper grounds U.K.

11.—(1) Where the auditor of a qualifying partnership is removed from office an application may be made to the High Court under this regulation.

(2) The persons who may make such an application are—

(a) any member of the qualifying partnership who was also a member at the time of the removal, and

(b) the Secretary of State.

(3) If the court is satisfied that the removal was—

(a) on grounds of divergence of opinion on accounting treatments or audit procedures, or

(b) on any other improper grounds,

it may make such order as it thinks fit for giving relief in respect of the removal.

(4) The court may, in particular—

(a) declare that any decision of the qualifying partnership removing an auditor, or appointing a new auditor in his place, is void;

(b) require the members of the qualifying partnership to re-appoint the dismissed auditor;

(c) give directions as to the conduct of the qualifying partnership's affairs in the future.

(5) In the application of this regulation to a qualifying partnership formed under the law of Scotland or Northern Ireland, references to the High Court are to be read as references to the Court of Session or, as the case may be, the High Court in Northern Ireland.

Duty of auditor to notify supervisory body U.K.

12.—(1) Where an auditor of a qualifying partnership ceases to hold office before the end of his term of office, he must notify the supervisory body of which he is a member.

(2) The notice must—

(a) inform the supervisory body that he has ceased to hold office, and

(b) be accompanied by a statement of any circumstances connected with his ceasing to hold office.

(3) The auditor must notify the supervisory body not more than 14 days after the date on which he ceases to hold office.

(4) In this regulation and regulation 13, “supervisory body” has the same meaning as in Part 42 of the Companies Act 2006 (statutory auditors) (see section 1217).

Duty of members of qualifying partnership to notify supervisory body U.K.

13.—(1) Where an auditor of a qualifying partnership ceases to hold office before the end of his term of office, the members of the partnership must notify the supervisory body of which the auditor is a member.

(2) The notice must—

(a) inform the supervisory body that the auditor has ceased to hold office, and

(b) be accompanied by a statement by the body of the reasons for his ceasing to hold office.

(3) The members of the qualifying partnership must notify the supervisory body not more than 14 days after the date on which the auditor ceases to hold office.

Statutory auditors U.K.

14.  For the purposes of section 1210(1)(h) of the Companies Act 2006 (meaning of “statutory auditor”)—

(a) a qualifying partnership is a prescribed person, and

(b) regulation 4(1)(b) is a prescribed enactment,

and accordingly a person appointed as auditor of a qualifying partnership for the purposes of regulation 4(1)(b) is a statutory auditor.

PART 4 U.K. OFFENCES

Penalties for non-compliance by members of qualifying partnership U.K.

15.—(1) If, in respect of a financial year of a qualifying partnership, the requirements of paragraph (1) of regulation 4 are not complied with within the period referred to in paragraph (3) of that regulation, every person who was a member of the partnership or a director of such a member at the end of that year is liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(2) If the accounts of a qualifying partnership—

(a) a copy of which is delivered to the registrar under regulation 5, or

(b) which are made available for inspection under regulation 6,

do not comply with the requirements of regulation 4(1), every person who, at the time when the copy was so delivered or (as the case may be) the accounts were first made available for inspection, was a member of the partnership or a director of such a member is liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(3) If a member of a qualifying partnership fails to comply with regulation 5, 6, 7(3) or 13, that member and any director of that member is liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(4) In proceedings for an offence under this section it is a defence for the person charged to show that he took all reasonable steps and exercised all due diligence to avoid the commission of the offence.

(5) The following provisions of the Companies Act 2006, namely—

(a) sections 1127 and 1128 (summary proceedings: venue and time limit for proceedings), and

(b) section 1130 (proceedings against unincorporated bodies),

apply to an offence under this regulation.

Penalties for non-compliance by auditors of qualifying partnerships U.K.

16.—(1) If a person ceasing to hold office as auditor fails to comply with regulation 12, an offence is committed by—

(a) that person, and

(b) if that person is a firm, every officer of the firm who is in default.

(2) In proceedings for an offence under this section it is a defence for the person charged to show that he took all reasonable steps and exercised all due diligence to avoid the commission of the offence.

(3) A person guilty of an offence under this regulation is liable—

(a) on conviction on indictment, to a fine, and

(b) on summary conviction, to a fine not exceeding the statutory maximum.

(4) The following provisions of the Companies Act 2006, namely—

(a) sections 1121 to 1123 (liability of officer in default),

(b) sections 1127 and 1128 (summary proceedings: venue and time limit for proceedings), and

(c) section 1130 (proceedings against unincorporated bodies),

apply to an offence under this regulation.

PART 5 U.K. FINAL PROVISIONS

Consequential amendments U.K.

17.—(1) In the following provisions of the Small Companies Accounts Regulations, for “Partnerships and Unlimited Companies (Accounts) Regulations 1993” substitute “ Partnerships (Accounts) Regulations 2008 ”

(a) paragraph 8(5) and (6) in Part 1 of Schedule 2, and

(b) paragraph 34(5) and (6) in Part 2 of Schedule 6.

(2) In paragraph 7(5) and (6) in Part 1 of Schedule 4 to the Large and Medium-sized Companies Accounts Regulations for “Partnerships and Unlimited Companies (Accounts) Regulations 1993” substitute “ Partnerships (Accounts) Regulations 2008 ”.

Revocation and transitional provisions etc. U.K.

18.—(1) The Partnerships and Unlimited Companies (Accounts) Regulations 1993 M6 and the Partnerships and Unlimited Companies (Accounts) Regulations (Northern Ireland) 1994 M7 are revoked.

(2) The regulations specified in paragraph (1) continue to apply to any financial year of a qualifying partnership beginning before 6th April 2008.

Marginal Citations

M6 S.I. 1993/1820.

M7 S.R. 1994/133, as amended by S.R. 2006/354.

[F14 Review U.K.

19.— (1) The Secretary of State must from time to time—

(a) carry out a review of regulations 4(1) and 9(1) and Part 1 of the Schedule,

(b) set out the conclusions of the review in a report, and

(c) publish the report.

(2) The report must, in particular—

(a) set out the objectives intended to be achieved by those provisions,

(b) assess the extent to which those objectives are achieved,

(c) assess whether those objectives remain appropriate, and

(d) if those objectives remain appropriate, assess the extent to which they could be achieved in another way which involves less onerous regulatory provision.

(3) In carrying out the review, the Secretary of State must have regard to how the provisions of Directive 2013/34/EU of 26 June 2013 on the annual financial statements etc. of certain types of undertakings are implemented in other Member States.

(4) The first report under this regulation must be published before the end of the period of 5 years beginning with the date on which the Limited Liability Partnerships, Partnerships and Groups (Accounts and Audit) Regulations 2016 come into force.

(5) Subsequent reports under this regulation must be published at intervals not exceeding 5 years.

(6) In this regulation, “regulatory provision” has the meaning given by section 32(4) of the Small Business, Enterprise and Employment Act 2015.]

Textual Amendments

F14 Reg. 19 inserted (17.5.2016) by The Limited Liability Partnerships, Partnerships and Groups (Accounts and Audit) Regulations 2016 (S.I. 2016/575), regs. 2(1), 64(2)

Gareth Thomas

Parliamentary Under Secretary of State for Trade and Consumer Affairs,

Department for Business, Enterprise and Regulatory Reform