(1)Where a trade or profession is carried on by persons in partnership, the partnership shall not, unless the contrary intention appears, be treated for [F2corporation tax purposes] as an entity which is separate and distinct from those persons.
(2)F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5)F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6)F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7)F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8)F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9)F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(10)F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(11)F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(12)F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(13)F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F1S. 111 substituted (with effect in accordance with s. 215(4)(5) of the 1994 amending Act) by Finance Act 1994 (c. 9), s. 215(1) (as amended (retrospectively) by Finance Act 1995 c. 4, s. 117(1)(a)(2)(4)) (with Sch. 20)
F2Words in s. 111(1) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 92(2) (with Sch. 2)
F3S. 111(2)-(13) repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 92(3), Sch. 3 (with Sch. 2)
Modifications etc. (not altering text)
C2S. 111 excluded (subsection (1) excepted) (with application in accordance with s. 44 of the excluding act) by Finance Act 1998 (c. 36), s. 46(1)(2), Sch. 6 para. 6(6)
C3S. 111 excluded (subsection (1) excepted) (with effect in accordance with s. 64 and Sch. 22 paras. 16-18 of the excluding Act) by Finance Act 2002 (c. 23), Sch. 22 para. 13(6)
F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F4S. 112 repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 93, Sch. 3 (with Sch. 2)
F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F5S. 113 repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 94, Sch. 3 (with Sch. 2)
(1)M1So long as a trade [F6profession or business] is carried on by persons in partnership, and any of those persons is a company, the profits and losses (including terminal losses) of the trade [F6profession or business] shall be computed for the purposes of corporation tax in like manner, and by reference to the like accounting periods, as if the partnership were a company [F7and, subject to section 115(4), as if that company were resident in the United Kingdom], and without regard to any change in the persons carrying on the trade [F6profession or business], except that—
(a)references to distributions shall not apply; and
(b)subject to section 116(5), no deduction or addition shall be made for charges on income, or for capital allowances and charges, nor in any accounting period for losses incurred in any other period nor for any expenditure to which section 401(1) applies; and
(c)a change in the persons engaged in carrying on the trade [F6profession or business] shall be treated as the transfer of the trade [F6profession or business] to a different company if there continues to be a company so engaged after the change, but not a company that was so engaged before the change.
(2)M2A company’s share in the profits or loss of any accounting period of the partnership, or in any matter excluded from the computation by subsection (1)(b) above, shall be determined according to the interests of the partners during that period, and corporation tax shall be chargeable as if that share derived from a trade [F6profession or business] carried on by the company alone in its corresponding accounting period or periods; and the company shall be assessed and charged to tax for its corresponding accounting period or periods accordingly.
In this subsection “corresponding accounting period or periods” means the accounting period or periods of the company comprising or together comprising the accounting period of the partnership, and any necessary apportionment shall be made between corresponding accounting periods if more than one.
(3)F8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F6Words in s. 114(1)-(3) inserted (with effect in accordance with s. 215(4)(5) of the amending Act) by Finance Act 1994 (c. 9), s. 215(2) (as s. 215(5) of that Act is modified (1.5.1995) by 1995 c. 4, s. 125(1)) (with Sch. 20)
F7Words in s. 114(1) inserted (with effect in accordance with s. 125(1) of the amending Act) by Finance Act 1995 (c. 4), s. 125(4)
F8S. 114(3) repealed (with effect in accordance with Finance Act 1994 (c. 9), s. 218(1)) by Finance Act 1995 (c. 4), Sch. 29 Pt. 8(15), Note 1
F9S. 114(4) repealed (with effect in accordance with s. 215(4)(5) of the repealing Act) by Finance Act 1994 (c. 9), s. 215(3)(a), Sch. 26 Pt. 5(24), Note 4(a) (as s. 215(5) of that Act is modified (1.5.1995) by 1995 c. 4, s. 125(1)) (with Sch. 20)
Modifications etc. (not altering text)
C4S. 114(1) modified (3.5.1994) by Finance Act 1994 (c. 9), s. 172(4)-(6)
Marginal Citations
M1Source—1970 s.155(1); 1973 s.31(5); 1980 s.39(3)
M2Source—1970 s.155(2); 1972 s.107(2)
(1)F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F11(4)So long as a trade, profession or business is carried on by persons in partnership and any of those persons is a company which is not resident in the United Kingdom, section 114 shall have effect in relation to that company as if—
(a)the reference in subsection (1) to a company resident in the United Kingdom were a reference to a company that is not so resident; and
(b)in subsection (2), after “carried on” there were inserted “in the United Kingdom through a [F12permanent establishment]”.
[F13(5)Subsections (5A) and (5B) apply if—
(a)a company resident in the United Kingdom (“the resident partner”) is a member of a partnership which resides outside the United Kingdom or which carries on any trade, profession or business the control and management of which is situated outside the United Kingdom, and
(b)by virtue of any arrangements falling within section 788 (“the arrangements”) any of the income or capital gains of the partnership is relieved from corporation tax in the United Kingdom.
(5A)The arrangements do not affect any liability to corporation tax in respect of the resident partner's share of any income or capital gains of the partnership (and section 114 has effect accordingly).
(5B)If the resident partner's share of the income of the partnership consists of or includes a share in a qualifying distribution made by a company resident in the United Kingdom, the resident partner (and not the partnership) is, despite the arrangements, entitled to the share of the tax credit in respect of the distribution which corresponds to the partner's share of the distribution (and section 114 has effect accordingly).]]
[F14(5C)For the purposes of subsections (5) to (5B) the members of a partnership include any company which is entitled to a share of income or capital gains of the partnership.]
(6)F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7)For the purposes of this section and section 114 “profits” shall not be taken as including chargeable gains.
Textual Amendments
F10S. 115(1)-(3)(6) repealed (with effect in accordance with s. 215(4)(5) of the repealing Act) by Finance Act 1994 (c. 9), s. 215(3)(b), Sch. 26 Pt. 5(24), Note 4(a) (as s. 215(5) of that Act is modified (1.5.1995) by 1995 c. 4, s. 125(1)) (with Sch. 20)
F11S. 115(4)(5) substituted (with effect in accordance with s. 125(1) of the amending Act) by Finance Act 1995 (c. 4), s. 125(5)
F12Words in s. 115(4)(b) substituted (with effect in accordance with s. 153(4) of the amending Act) by Finance Act 2003 (c. 14), s. 153(1)(a)
F13S. 115(5)-(5B) substituted for s. 115(5) (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 95(2) (with Sch. 2)
F14S. 115(5C) inserted (retrospectively) by Finance Act 2008 (c. 9), s. 58(1)(4)
Modifications etc. (not altering text)
C5S. 115(5) modified (with retrospective effect) by Finance Act 2008 (c. 9), s. 58(5)(6)(b)
M3(1)The provisions of subsection (2) below shall apply in relation to a company (“the partner company”) which is a member of a partnership carrying on a trade if arrangements are in existence (whether as part of the terms of the partnership or otherwise) whereby—
(a)in respect of the whole or any part of the value of, or of any portion of, the partner company’s share in the profits or loss of any accounting period of the partnership, another member of the partnership or any person connected with another member of the partnership receives any payment or acquires or enjoys, directly or indirectly, any other benefit in money’s worth; or
(b)in respect of the whole or any part of the cost of, or of any portion of, the partner company’s share in the loss of any accounting period of the partnership, the partner company or any person connected with that company receives any payment or acquires or enjoys, directly or indirectly, any other benefit in money’s worth, other than a payment in respect of group relief to the partner company by a company which is a member of the same group as the partner company for the purposes of group relief.
(2)In any case where the provisions of this subsection apply in relation to the partner company—
(a)the company’s share in the loss of the relevant accounting period of the partnership and its share in any charges on income, within the meaning of section 338, paid by the partnership in that accounting period shall not be available for set-off for the purposes of corporation tax except against its share in the profits of the trade carried on by the partnership; and
(b)except in accordance with paragraph (a) above, no trading losses shall be available for set-off for the purposes of corporation tax against the company’s share in the profits of the relevant accounting period of the partnership; and
(c)except in accordance with paragraphs (a) and (b) above, no amount which, apart from this subsection, would be available for relief against profits shall be available for set-off for the purposes of corporation tax against so much of the company’s total profits as consists of its share in the profits of the relevant accounting period of the partnership; and
(d)F15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)In subsection (2) above “relevant accounting period of the partnership” means any accounting period of the partnership in which any such arrangements as are specified in subsection (1) above are in existence or to which any such arrangements apply.
(4)If a company is a member of a partnership and [F16corporation] tax in respect of any profits of the partnership is chargeable under Case VI of Schedule D, this section shall apply in relation to the company’s share in the profits or loss of the partnership as if—
(a)the profits or loss to which the company’s share is attributable were the profits of, or the loss incurred in, a trade carried on by the partnership; and
[F17(b)any allowance to be given effect under Part 2 of the Capital Allowances Act in respect of a special leasing of plant or machinery were an allowance to be given effect in calculating the profits of that trade.]
(5)For the purposes of this section, subsection (2) of section 114 shall have effect for determining a company’s share in the profits or loss of any accounting period of a partnership as if, in subsection (1)(b) of that section, the words “ or for capital allowances and charges ” were omitted.
(6)In this section “arrangements” means arrangements of any kind whether in writing or not.
(7)Section 839 shall apply for the purposes of this section.
Textual Amendments
F15S. 116(2)(d) repealed (with effect in accordance with Sch. 3 para. 10(3) of the repealing Act) by Finance Act 1998 (c. 36), Sch. 3 para. 10(2), Sch. 27 Pt. 3(2), Note
F16Word in s. 116(4) inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 96 (with Sch. 2)
F17S. 116(4)(b) substituted (with effect in accordance with s. 579 of the amending Act) by Capital Allowances Act 2001 (c. 2), Sch. 2 para. 21
Marginal Citations
M3Source—1973 s.31(1)-(5), (9), 32(6)
F18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F18S. 117 repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 13, Sch. 3 Pt. 1 (with Sch. 2)
(1)M4An amount which may be given F19. . . under section 338, [F20393A(1)] or [F21403] below F22. . . —
(a)in respect of a loss incurred by a company in a trade, or of charges paid by a company in connection with the carrying on of a trade, in a relevant accounting period; F23. . .
(b)F23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
may be given F19. . . to that company (“the partner company”) otherwise than against [F24profits] arising from the trade, or to another company, only to the extent that the amount given F19. . . or (as the case may be) the aggregate amount does not exceed the relevant sum.
(2)M5In this section—
[F25“limited partner” means—
a company which is carrying on a trade as a limited partner in a limited partnership registered under the Limited Partnerships Act 1907;
a company which—
is carrying on a trade as a general partner in a partnership;
is not entitled to take part in the management of the trade; and
is entitled to have its liabilities, or its liabilities beyond a certain limit, for debts or obligations incurred for the purposes of the trade discharged or reimbursed by some other person; or
a company which carries on a trade jointly with others and which, under the law of any territory outside the United Kingdom—
is not entitled to take part in the management of the trade; and
is not liable beyond a certain limit for debts or obligations incurred for the purposes of the trade;]
“relevant accounting period” means an accounting period of the partner company at any time during which it carried on the trade as a limited partner F26. . . ;
“the aggregate amount” means the aggregate of any amounts given F27. . . to the partner company or another company at any time under section 338, [F28393A(1)] or [F21403] below F29. . . —
“the relevant sum” means the amount of the partner company’s contribution F31. . . to the trade as at the appropriate time; and
“the appropriate time” is the end of the relevant accounting period in which the loss is incurred or the charges paid or for which the allowance falls to be made (except that where the partner company ceased to carry on the trade during that accounting period it is the time when it so ceased).
[F32(3)A partner company's contribution to a trade at any time is the aggregate of—
(a)the amount which the partner company has contributed to the trade as capital and has not, directly or indirectly, drawn out or received back (other than anything which it is or may be entitled so to draw out or receive back at any time when it carries on the trade as a limited partner or which it is or may be entitled to require another person to reimburse to it), and
(b)the amount of any profits of the trade to which the partner company is entitled but which it has not received in money or money's worth.]
Textual Amendments
F19Words in s. 118(1) repealed (with effect in accordance with s. 579 of the repealing Act) by Capital Allowances Act 2001 (c. 2), Sch. 2 para. 23(1)(a), Sch. 4
F20Words in s. 118(1) substituted by Finance Act 1991 (c. 31, SIF 63:1), s. 73(3)-(5), Sch. 15 para. 4(a)(in relation to losses incurred in accounting periods ending on or after 1.4.1991)
F21Words in s. 118(1)(2) substituted (with effect in accordance with s. 38(2)(3) of the amending Act) by Finance Act 1998 (c. 36), Sch. 5 para. 35
F22Words in s. 118(1) repealed (with effect in accordance with s. 579 of the repealing Act) by Capital Allowances Act 2001 (c. 2), Sch. 2 para. 23(1)(b), Sch. 4
F23S. 118(1)(b) and preceding word repealed (with effect in accordance with s. 579 of the repealing Act) by Capital Allowances Act 2001 (c. 2), Sch. 2 para. 23(1)(c), Sch. 4
F24Words in s. 118(1) substituted (31.7.1998) by Finance Act 1998 (c. 36), s. 46(3)(a)(b), Sch. 7 para. 1
F25S. 118(2): definition of "limited partner" inserted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 14(2) (with Sch.. 2)
F26Words in s. 118(2) repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 14(3), Sch. 3 Pt. 1 (with Sch. 2)
F27Words in s. 118(2) repealed (with effect in accordance with s. 579 of the repealing Act) by Capital Allowances Act 2001 (c. 2), Sch. 2 para. 23(2)(a) {Sch. 4} (with Sch. 2 para. 23(3))
F28Words in s. 118(2) substituted by Finance Act 1991 (c. 31, SIF 63:1), s. 73(3)-(5), Sch. 15 para. 4(b)(in relation to losses incurred in accounting periods ending on or after 1.4.1991)
F29Words in s. 118(2)(b) repealed (with effect in accordance with s. 579 of the repealing Act) by Capital Allowances Act 2001 (c. 2), Sch. 2 para. 23(2)(b), Sch. 4 (with Sch. 2 para. 23(3))
F30S. 118(2)(b) and preceding word repealed (with effect in accordance with s. 579 of the repealing Act) by Capital Allowances Act 2001 (c. 2), Sch. 2 para. 23(2)(c), Sch. 4 (with Sch. 2 para. 23(3))
F31Words in s. 118(2) repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 14(4), Sch. 3 Pt. 1 (with Sch. 2)
F32S. 118(3) inserted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 14(5) (with Sch. 2)
Marginal Citations
M4Source—1985 Sch.12 3(1)-(3)
M5Source—1985 Sch.12 3(4), 1, 4
Textual Amendments
F33Ss. 118ZA-118ZD and preceding cross-heading inserted (6.4.2001) by Limited Liability Partnerships Act 2000 (c. 12), ss. 10(1), 19(1); S.I. 2000/3316, art. 2
[F34(1)For [F35corporation tax purposes], where a limited liability partnership carries on a trade, profession or other business with a view to profit—
(a)all the activities of the partnership are treated as carried on in partnership by its members (and not by the partnership as such),
(b)anything done by, to or in relation to the partnership for the purposes of, or in connection with, any of its activities is treated as done by, to or in relation to the members as partners, and
(c)the property of the partnership is treated as held by the members as partnership property.
References in this subsection to the activities of the limited liability partnership are to anything that it does, whether or not in the course of carrying on a trade, profession or other business with a view to profit.
(2)For all purposes, except as otherwise provided, in [F36the Corporation Tax Acts]—
(a)references to a partnership include a limited liability partnership in relation to which subsection (1) above applies,
(b)references to members of a partnership include members of such a limited liability partnership,
(c)references to a company do not include such a limited liability partnership, and
(d)references to members of a company do not include members of such a limited liability partnership.
(3)Subsection (1) above continues to apply in relation to a limited liability partnership which no longer carries on any trade, profession or other business with a view to profit—
(a)if the cessation is only temporary, or
(b)during a period of winding up following a permanent cessation, provided—
(i)the winding up is not for reasons connected in whole or in part with the avoidance of tax, and
(ii)the period of winding up is not unreasonably prolonged,
but subject to subsection (4) below.
(4)Subsection (1) above ceases to apply in relation to a limited liability partnership—
(a)on the appointment of a liquidator or (if earlier) the making of a winding-up order by the court, or
(b)on the occurrence of any event under the law of a country or territory outside the United Kingdom corresponding to an event specified in paragraph (a) above.]
Textual Amendments
F34S. 118ZA substituted (retrospective to 6.4.2001) by Finance Act 2001 (c. 9), s. 75(1)(6)
F35Words in s. 118ZA(1) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 97(a) (with Sch. 2)
F36Words in s. 118ZA(2) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 97(b) (with Sch. 2)
Section 118 has effect in relation to a member of a limited liability partnership as in relation to a limited partner, but subject to sections 118ZC and 118ZD.]
Textual Amendments
F37S. 118ZB substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 15 (with Sch. 2)
(1)Subsection (3) of [F38section 118] does not have effect in relation to a member of a limited liability partnership.
(2)But, for the purposes of F39. . . section 118, such a member’s contribution to a trade at any time (“the relevant time”) is the greater of—
(a)the amount subscribed by [F40it], and
(b)the amount of [F41its] liability on a winding up.
(3)The amount subscribed by a member of a limited liability partnership is the amount which [F42it] has contributed to the limited liability partnership as capital, less so much of that amount (if any) as—
(a)[F42it] has previously, directly or indirectly, drawn out or received back,
(b)[F42it] so draws out or receives back during the period of five years beginning with the relevant time,
(c)[F42it] is or may be entitled so to draw out or receive back at any time when [F43it] is a member of the limited liability partnership, or
(d)[F42it] is or may be entitled to require another person to reimburse to [F43it].
(4)The amount of the liability of a member of a limited liability partnership on a winding up is the amount which—
(a)[F44it] is liable to contribute to the assets of the limited liability partnership in the event of [F45the partnership's] being wound up, and
(b)[F44it] remains liable so to contribute for the period of at least five years beginning with the relevant time (or until [F46the partnership] is wound up, if that happens before the end of that period).
[F47(5)F48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F38Words in s. 118ZC(1) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 16(2) (with Sch. 2)
F39Words in s. 118ZC(2) repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 16(3)(a), Sch. 3 Pt. 1 (with Sch. 2)
F40Word in s. 118ZC(2)(a) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 16(3)(b) (with Sch. 2)
F41Word in s. 118ZC(2)(b) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 16(3)(c) (with Sch. 2)
F42Words in s. 118ZC(3) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 16(4)(a) (with Sch. 2)
F43Word in s. 118ZC(3)(d) substituted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 16(4)(b) (with Sch. 2)
F44Words in s. 118ZC(4) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 16(5)(a) (with Sch. 2)
F45Words in s. 118ZC(4)(a) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 16(5)(b) (with Sch. 2)
F46Words in s. 118ZC(4) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 16(5)(c) (with Sch. 2)
F47S. 118ZC(5) inserted (retrospective to 2.12.2004) by Finance Act 2005 (c. 7), s. 73(3)(5)
F48S. 118ZC(5) repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 16(6), Sch. 3 Pt. 1 (with Sch. 2)
(1)Where amounts relating to a trade carried on by a member of a limited liability partnership are, in any one or more [F49accounting periods], prevented from being given or allowed by section F50. . . 118 as it applies otherwise than by virtue of this section ([F51the member's]“total unrelieved loss”), subsection (2) applies in each subsequent [F52accounting period] in which—
(a)[F53the member] carries on the trade as a member of the limited liability partnership, and
(b)any of [F51the member's] total unrelieved loss remains outstanding.
(2)[F54Sections 393A(1) and 403 (and section 118 as it applies] in relation to those sections) shall have effect in the subsequent [F55accounting period] as if—
(a)any loss sustained or incurred by the member in the trade in that [F55accounting period] were increased by an amount equal to so much of [F56the member's] total unrelieved loss as remains outstanding in that period, or
(b)(if no loss is so sustained or incurred) a loss of that amount were so sustained or incurred.
(3)To ascertain whether any (and, if so, how much) of a member’s total unrelieved loss remains outstanding in the subsequent [F57accounting period], deduct from the amount of [F58the member's] total unrelieved loss the aggregate of—
(a)any relief given under any provision of [F59the Corporation Tax Acts] (otherwise than as a result of subsection (2)) in respect of [F58the member's] total unrelieved loss in that or any previous [F57accounting period], and
(b)any amount given or allowed in respect of [F58the member's] total unrelieved loss as a result of subsection (2) in any previous [F57accounting period] (or which would have been so given or allowed had a claim been made).]
Textual Amendments
F49Words in s. 118ZD(1) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 17(2)(a) (with Sch. 2)
F50Words in s. 118ZD(1) repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 17(2)(b), Sch. 3 Pt. 1 (with Sch. 2)
F51Words in s. 118ZD(1) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 17(2)(c) (with Sch. 2)
F52Words in s. 118ZD(1) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 17(2)(d) (with Sch. 2)
F53Words in s. 118ZD(1)(a) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 17(2)(e) (with Sch. 2)
F54Words in s. 118ZD(2) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 17(3)(a) (with Sch. 2)
F55Words in s. 118ZD(2) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 17(3)(b) (with Sch. 2)
F56Words in s. 118ZD(2)(a) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 17(3)(c) (with Sch. 2)
F57Words in s. 118ZD(3) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 17(4)(a) (with Sch. 2)
F58Words in s. 118ZD(3) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 17(4)(b) (with Sch. 2)
F59Words in s. 118ZD(3)(a) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 17(4)(c) (with Sch. 2)
Textual Amendments
F60Ss. 118ZE-118ZK and preceding cross-heading inserted (22.7.2004) by Finance Act 2004 (c. 12), s. 124(1)
F61. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F61Ss. 118ZE-118ZK repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 18, Sch. 3 Pt. 1 (with Sch. 2)
F62. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F62Ss. 118ZE-118ZK repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 18, Sch. 3 Pt. 1 (with Sch. 2)
F63. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F63Ss. 118ZE-118ZK repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 18, Sch. 3 Pt. 1 (with Sch. 2)
F64. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F64Ss. 118ZE-118ZK repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 18, Sch. 3 Pt. 1 (with Sch. 2)
F65. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F65Ss. 118ZE-118ZK repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 18, Sch. 3 Pt. 1 (with Sch. 2)
F66. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F66Ss. 118ZE-118ZK repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 18, Sch. 3 Pt. 1 (with Sch. 2)
F67. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F67Ss. 118ZE-118ZK repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 18, Sch. 3 Pt. 1 (with Sch. 2)
Textual Amendments
F68Ss. 118ZL, 118ZM and preceding cross-heading inserted (22.7.2004) by Finance Act 2004 (c. 12), s. 125
F69. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F69Ss. 118ZL, 118ZM repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 19, Sch. 3 Pt. 1 (with Sch. 2)
F70. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F70Ss. 118ZL, 118ZM repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 19, Sch. 3 Pt. 1 (with Sch. 2)
Textual Amendments
F71Ss. 118ZN, 118ZO and preceding cross-heading inserted (retrospective to 2.12.2004) by Finance Act 2005 (c. 7), s. 73(1)(5)
F72. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F72Ss. 118ZN, 118ZO repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 20, Sch. 3 Pt. 1 (with Sch. 2)
F73. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F73Ss. 118ZN, 118ZO repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 20, Sch. 3 Pt. 1 (with Sch. 2)