http://www.legislation.gov.uk/ukpga/2005/5/section/863GIncome Tax (Trading and Other Income) Act 2005An Act to restate, with minor changes, certain enactments relating to income tax on trading income, property income, savings and investment income and certain other income; and for connected purposes.texttext/xmlenStatute Law Database2026-07-30Expert Participation2026-07-15 Income Tax (Trading and Other Income) Act 2005s. 168(6)(e) and wordPlanning (Consequential Provisions) (Wales) Act 2026Deddf Cynllunio (Darpariaethau Canlyniadol) (Cymru) 2026Sch. 2 para. 370(b)Sch. 5 Pt. 1s. 5(2) Part 9863G1In determining whether section 863A(2) applies in the case of an individual who is a member of a limited liability partnership, no regard is to be had to any arrangements the main purpose, or one of the main purposes, of which is to secure that section 863A(2) does not apply in the case of—athe individual, orbthe individual and one or more other individuals.2Subsection (4) applies if—aan individual (“X”) personally performs services for a limited liability partnership at a time when X is not a member of the partnership,bX performs the services under arrangements involving a member of the limited liability partnership (“Y”) who is not an individual,cthe main purpose, or one of the main purposes, of those arrangements is to secure that section 863A(2) does not apply in the case of X or in the case of X and one or more other individuals, anddin relation to X's performance of the services, an amount falling within subsection (3) arises to Y in respect of Y's membership of the limited liability partnership.3An amount falls within this subsection if—awere X performing the services under a contract of service by which X were employed by the limited liability partnership, andbwere the amount to arise to X directly from the limited liability partnership,the amount would be employment income of X in respect of the employment.4If this subsection applies, in relation to X's performance of the services, X is to be treated on the following basis—aX is a member of the limited liability partnership in whose case section 863A(2) applies,bthe amount arising to Y arises instead to X directly from the limited liability partnership,cthat amount is employment income of X in respect of the employment under section 863A(2) accordingly, anddneither that amount, nor any amount representing that amount, is to be income of X for income tax purposes on any other basis.4ASection 863A(2) does not apply in the case of a member of a limited liability partnership if, apart from this subsection, it would apply in consequence of arrangements the main purpose, or one of the main purposes, of which is to secure that section 850C does not apply for one or more periods of account in relation to—athe member, orbthe member and one or more other members of the limited liability partnership.5In this section “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).Pt. 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)Pt. 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))Ss. 863A-863G inserted (6.4.2014 for specified purposes, 18.7.2014 in so far as not already in force) by Finance Act 2014 (c. 26), Sch. 17 paras. 1, 6