Partnership is dissolved by a court
Responsibility for debts and the distribution of profits when a partnership is dissolved
In a number of instances, including the permanent mental incapacity of a partner, you can apply to a court to have the partnership ended.
If the partnership is ended because of fraud committed by one partner on the others, the defrauded partners are entitled to keep the defrauder's share of the partnership capital as security against any future debts of the partnership.
If partnership property has increased in value during the period of the partnership the assets may be subject to Capital Gains Tax. See business assets and Capital Gains Tax.
If the partnership is dissolved, this may well give rise to chargeable gains on the individual partners on disposal, or deemed disposal, of partnership assets.