Part 17

Partnerships

Calculation of partners' shares

Excess profit allocation to non-individual partners etc
1264A
1
Subsection (2) applies in a case in which—
a
section 850C(4) or 850D(4) of
ITTOIA
2005 applies for a period of account (“the relevant period of account”), and
b
the partner who is “
B
” for the purposes of section 850C or 850D of that Act (as the case may be) is a company.
2
In applying sections 1262 to 1264 in relation to the company—
a
for the accounting period of the firm which coincides with the relevant period of account, or
b
if no accounting period of the firm coincides with the relevant period of account, for accounting periods of the firm in which the relevant period of account falls,
such adjustments are to be made as are just and reasonable to take account of the increase under section 850C(4) of
ITTOIA
2005 or A's share of the firm's profit under section 850D(4) of that Act.
3
Sections 850C(23) and 850E(2) of
ITTOIA
2005 apply for corporation tax purposes as they apply for income tax purposes.
S. 1264A inserted (retrospective to 5.12.2013 and with effect in accordance with Sch. 17 paras. 12, 13 of the amending Act) by Finance Act 2014 (c. 26), Sch. 17 paras. 10(3), 11
Pt. 17 applied (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), s. 291