Section 271C: Trade or profession carried on in partnership
1250.This section contains special rules to deal with the case where the non‑UK resident carries on a trade or profession in partnership. It is based on section 126(6), (7) and (7A) of FA 1995.
1251.Subsections (1) and (2) provide that, if a partnership carries on a trade or profession in the United Kingdom through a branch or agency, the branch or agency is treated as the UK representative of any non‑UK resident partner in relation to the share of the gains in respect of which that partner is chargeable under section 10 of TCGA.
1252.Subsections (3) and (4) provide that section 271B also applies if a partnership which includes both UK resident and non‑UK resident members carries on a trade or profession in the United Kingdom, whether it does so itself or through a branch or agency.
1253.In this case, the partnership itself is treated as the UK representative of the non‑UK resident partner in relation to the share of the gains in respect of which that partner is chargeable under section 10 of TCGA. This is so notwithstanding that there may also be a branch or agency which is the non‑UK resident partner’s UK representative in relation to those chargeable gains. All the partners are as a consequence jointly liable for capital gains tax on the gains of the non‑UK resident partner.
