C2C1Part 9Partnerships
Pt. 9 modified (with effect as mentioned in Sch. 6 para. 6(2)-(7) to the amending Act) by Income and Corporation Taxes Act 1988 (c. 1) , s. 774D(4) as inserted by Finance Act 2006 (c. 25), s. 76, Sch. 6 para. 6(1)
Firms with a foreign element
857Partners to whom the remittance basis F2applies
1
This section applies if—
a
a firm carries on a trade wholly or partly outside the United Kingdom,
b
the control and management of the trade is outside the United Kingdom, and
F3c
section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to a partner for a tax year.
2
The partner's share of the profits of the trade arising in the United Kingdom is determined in accordance with sections 849 to 856.
3
The partner's share of the profits of the trade arising outside the United Kingdom is treated as relevant foreign income F4....
858Resident partners and double taxation agreements
1
This section applies if—
a
a UK resident (“the partner”) is a member of a firm which—
i
resides outside the United Kingdom, or
ii
carries on a trade the control and management of which is outside the United Kingdom, and
b
by virtue of any arrangements having effect under F5section 2(1) of TIOPA 2010 (“the arrangements”) any of the income of the firm is relieved from income tax in the United Kingdom.
2
The partner is liable to income tax on the partner's share of the income of the firm despite the arrangements.
3
If the partner's share of the income of the firm consists of or includes a share in a qualifying distribution—
a
made by a UK resident company, and
b
chargeable to tax under Chapter 3 of Part 4,
the partner (and not the firm) is, despite the arrangements, entitled to the share of the tax credit which corresponds to the partner's share of the distribution.
F14
For the purposes of this section the members of a firm include any person entitled to a share of income of the firm.
Pt. 9 applied (1.4.2010) by Income Tax Act 2007 (c. 3), ss. 809BZH(2)(a), 809BZK(4)(a) (as inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 5 para. 3 (with Sch. 9 paras. 1-9, 22))