Modifications etc. (not altering text)
C1Pt. 9 applied (1.4.2010) by Income Tax Act 2007 (c. 3), ss. 809BZH(2)(a), 809BZK(4)(a) (as inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 5 para. 3 (with Sch. 9 paras. 1-9, 22))
C2Pt. 9 modified (with effect as mentioned in Sch. 6 para. 6(2)-(7) to the amending Act) by Income and Corporation Taxes Act 1988 (c. 1) , s. 774D(4) as inserted by Finance Act 2006 (c. 25), s. 76, Sch. 6 para. 6(1)
(1)This section applies if—
(a)a UK resident (“the partner”) is a member of a firm which—
(i)resides outside the United Kingdom, or
(ii)carries on a trade the control and management of which is outside the United Kingdom, and
(b)by virtue of any arrangements having effect under [F1section 2(1) of TIOPA 2010] (“the arrangements”) any of the income of the firm is relieved from income tax in the United Kingdom.
(2)The partner is liable to income tax on the partner's share of the income of the firm despite the arrangements.
(3)If the partner's share of the income of the firm consists of or includes a share in a qualifying distribution—
(a)made by a UK resident company, and
(b)chargeable to tax under Chapter 3 of Part 4,
the partner (and not the firm) is, despite the arrangements, entitled to the share of the tax credit which corresponds to the partner's share of the distribution.
[F2(4)For the purposes of this section the members of a firm include any person entitled to a share of income of the firm.]
Textual Amendments
F1Words in s. 858(1)(b) substituted (1.4.2010) (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 70 (with Sch. 9 paras. 1-9, 22)
F2S. 858(4) inserted (retrospectively) by Finance Act 2008 (c. 9), s. 58(3)(4)