Income Tax (Trading and Other Income) Act 2005

Introduction U.K.

846 Overview of Part 9 U.K.

This Part contains some special rules about partnerships.

847 General provisions U.K.

(1) In this Act persons carrying on a trade in partnership are referred to collectively as a “firm”.

(2) The provisions of this Part are expressed to apply to trades but unless otherwise indicated (whether expressly or by implication) also apply—

(a) to professions, and

(b) in the case of this section and sections 849, 850, 857 and 858 to businesses that are not trades or professions.

(3) In those sections as applied by subsection (2)(b)—

(a) references to a trade are references to a business, and

(b) references to the profits of a trade are references to the income arising from a business.

848 Assessment of partnerships U.K.

Unless otherwise indicated (whether expressly or by implication), a firm is not to be regarded for income tax purposes as an entity separate and distinct from the partners.