1.This section applies where a person is a member of a partnership.
2.Subsections (1) and (2) provide that, where a person is a member of a partnership, references to the expenses, income or revenue, or a reduction in income, of the person includes references to the person’s share of the expenses, income or revenue, or a reduction in the income, of the partnership.
3.Subsection (3) defines what is meant by “the person’s share”.
4.The diverted profits tax is a new charge on diverted profits. The main objective is to counteract contrived arrangements used by large groups (typically multinational enterprises) that result in the erosion of the UK tax base.