Part 22

Miscellaneous provisions
Chapter 3

Transfer of relief within partnerships

Arrangements for transfer of relief
959
1
Arrangements are within this section if they have any of these effects.
- Effect 1
The partner company receives a payment in respect of the cost of its share in the firm's losses of any accounting period of the firm.
- Effect 2
A person connected with the partner company receives a payment in respect of the cost of the partner company's share in the firm's losses of any accounting period of the firm.
- Effect 3
Another partner in the firm receives a payment in respect of the value of the partner company's share in the firm's profits or losses of any accounting period of the firm.
- Effect 4
A person connected with another partner in the firm receives a payment in respect of the value of the partner company's share in the firm's profits or losses of any accounting period of the firm.
2
It does not matter for the purposes of subsection (1) whether the payment is received in respect of the whole of the partner company's share or in respect of only a part of it.
3
For the purposes of subsection (1) receiving a payment includes receiving or enjoying (whether directly or indirectly) any other benefit in money or money's worth.
4
For the purposes of Effect 1 arrangements, payments made in respect of group relief to the partner company by a group-related company are to be ignored.
5
In subsection (4) a “group-related” company is a company that is a member of the same group of companies as the partner company for the purposes of Part 5 (group relief) (see section 152).