C1Part 17Partnerships

Annotations:
Modifications etc. (not altering text)

Introduction

1256Overview of Part

1

This Part contains some special rules about partnerships.

2

For restrictions that in some circumstances affect relief for losses, and certain other reliefs, for a company that is a member of a partnership see F1Chapter 3 of Part 22 of CTA 2010 (transfer of relief within partnerships).

1257General provisions

1

In this Act persons carrying on a trade in partnership are referred to collectively as a “firm”.

2

This section and sections 1259 to 1266 are expressed to apply to trades, but unless otherwise indicated (whether expressly or by implication) also apply to businesses that are not trades.

3

In those sections as applied by subsection (2)—

a

references to a trade are references to a business, and

b

references to the profits of a trade are references to the income arising from a business.

1258Assessment of firms

Unless otherwise indicated (whether expressly or by implication), a firm is not to be regarded for corporation tax purposes as an entity separate and distinct from the partners.

1258AF2Bare trusts

1

This section applies if—

a

a partner in a firm is partner as trustee for a beneficiary who is absolutely entitled to the partner's share of the profits of the firm, and

b

the beneficiary is chargeable to tax on those profits.

2

References in this Part to a partner or member of the firm include references to the beneficiary.