PART III Income Tax and Profits Tax (Penalties and Assessments)

52 Modification of s. 51 in relation to partnerships
(1) The following provisions of this section shall have effect where such an assessment as is mentioned in subsection (1) of section fifty-one of this Act was made on any person who at any time carried on a trade, profession or vocation in partnership with any other person (whether the assessment was made in respect of the profits or gains thereof or not).
(2) In this section—
" the business " means the trade, profession or vocation mentioned in subsection (1) of this section;
" the normal year " has the same meaning as in section fifty-one of this Act;
" the person in default " means the person mentioned in subsection (1) of that section.
(3) Subject to subsection (5) of this section, an assessment in respect of the profits or gains of the business may be made under the said section fifty-one not only on the person in default but on any person who carried on the business at any time in the year for which the assessment is made and either—
(a) then carried it on in partnership with the person in default or with a person who at any time in the normal year carried it on in partnership with the person in default; or
(b) at any time in the normal year carried on the business in partnership with the person in default;
and may be made for the purpose of making good to the Crown a loss of tax attributable to the neglect of any person who carried on the business at any time in the year for which the assessment is made.
(4) For the purpose of determining whether leave may be given for the making of such an assessment on two or more persons who carried on the business in partnership subsections (5) and (6) of the said section fifty-one shall have effect as if the neglect referred to therein were the neglect of any of those persons and as if the assessments referred to therein were assessments made on any one of those persons.
(5) Where such an assessment is made on two or more persons who carried on the business in partnership and those persons include any person (in this subsection referred to as "the exempted partner ") who was not charged in any such assessment as is mentioned in subsection (1) of this section, the tax charged in the assessment—
(a) shall not include tax on so much of the profits or gains as would fall to be included in the exempted partner's total income; and
(b) shall not be recoverable from the exempted partner ;
and where a person who was not charged as aforesaid carried on the business otherwise than in partnership no such assessment shall be made on him.