Part 2 Partnerships with Mixed Membership
Finance Act 2014 (2014 c 26) | Legislation

Part 2 Partnerships with Mixed Membership

Main provision

7

(1)     Part 9 of ITTOIA 2005 (partnerships) is amended as follows.

(2)     In section 850 (allocation of firm's profits and losses between partners) in subsection (1) for “and 850B†substitute “to 850Dâ€.

(3)     After section 850B insert—

“850C Excess profit allocation to non-individual partners

(1)     Subsections (4) and (5) apply if—

(a)     for a period of account (“the relevant period of accountâ€)—

(i)     the calculation under section 849 in relation to an individual partner (“Aâ€) (see subsection (6)) produces a profit for the firm, and

(ii)     A's share of that profit determined under section 850 or 850A (“A's profit shareâ€) is a profit or is neither a profit nor a loss,

(b)     a non-individual partner (“Bâ€) (see subsection (6)) has a share of the profit for the firm mentioned in paragraph (a)(i) (“B's profit shareâ€) which is a profit (see subsection (7)), and

(c)     condition X or Y is met.

(2)     Condition X is that it is reasonable to suppose that—

(a)     amounts representing A's deferred profit (see subsection (8)) are included in B's profit share, and

(b)     in consequence, both A's profit share and the relevant

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