Part 17Partnerships
Adjustment on change of basis
1267Various rules for trades and property businesses
1
In the case of a trade or property business carried on by a firm, the amount of any adjustment under—
a
Chapter 14 of Part 3 (adjustment on change of basis: trades), or
b
section 262 (giving effect to positive and negative adjustments: property businesses),
is calculated as if the firm were a UK resident company.
2
Each partner's share of any amount brought into account as a receipt under Chapter 14 of Part 3, or section 262, is determined according to the firm's profit-sharing arrangements for the 12 months ending immediately before the date on which the new basis was adopted.
3
A change in the persons carrying on a trade from one period of account to the next does not prevent Chapter 14 of Part 3 applying in relation to the trade so long as a company carrying on the trade in partnership immediately before the change continues to carry it on in partnership after the change.
4
A change in the persons carrying on a property business from one period of account to the next does not prevent section 262 applying (by virtue of section 261) in relation to the property business so long as a company carrying on the property business in partnership immediately before the change continues to carry it on in partnership after the change.
5
Sections 1259 to 1264 do not apply so far as subsection (1) or (2) applies.