Section 835F: Trade or profession carried on in partnership
1201.This section contains special rules to deal with the case where the non-UK resident carries on a trade or profession in partnership. It is based on section 126(6), (7) and (7A) of FA 1995.
1202.Subsections (1) and (2) provide that, if a partnership carries on a trade or profession in the United Kingdom through a branch or agency, the branch or agency is treated as the UK representative of any non-UK resident partner in relation to that partner’s share of the United Kingdom profits.
1203.Subsections (3) and (4) provide that section 835E also applies if a partnership which includes both UK resident and non-UK resident members carries on a trade or profession in the United Kingdom, whether it does so itself or through a branch or agency.
1204.In this case, the partnership itself is treated as the UK representative of the non-UK resident partner in relation to that partner’s share of the United Kingdom profits, notwithstanding that there may also be a branch or agency which is the non-UK resident partner’s UK representative in respect of those profits. All the partners are as a consequence jointly liable for tax on the non-UK resident partner’s share of the United Kingdom profits.