Deed of Variation to Partnership

Partnership agreements will likely deal with the manner in which profits and losses are apportioned in the partnership. This deed would act as an amendment to the relevant clause in the partnership agreement, to change the original or documented profit share ratio between the partners. The change may result in a gain to a few partners, and a loss to others. Those partners who stand to gain will often compensate the sacrificing partners. This compensation can be documented elsewhere.
Care should be taken to ensure the variation does not amount to a change in property rights, as this would result in stamp duty, income and capital gains tax implications. Partners using this deed may require independent advice in relation to any duty or tax implications.