Modifications etc. (not altering text)
C1Pt. 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))
C2Pt. 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)
This Part contains some special rules about partnerships.
(1)In this Act persons carrying on a trade in partnership are referred to collectively as a “firm”.
(2)The provisions of this Part [F1which are expressed to apply to trades also apply, unless otherwise indicated (whether expressly or by implication)] —
(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.
[F2(4)For the purposes of this Part, a person is an indirect partner in a partnership (“the underlying partnership”) if the person is a partner in—
(a)a partnership which is a partner in the underlying partnership, or
(b)any partnership which is an indirect partner in the underlying partnership by virtue of the preceding application of this subsection.]
Textual Amendments
F1Words in s. 847(2) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 638 (with Sch. 2 Pts. 1, 2)
F2S. 847(4) inserted (with effect in accordance with Sch. 6 para. 5(5) of the amending Act) by Finance Act 2018 (c. 3), Sch. 6 para. 5(2)
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.
(1)This section applies if—
(a)a partner in a firm is partner as trustee for a beneficiary who is absolutely entitled to the partner's share of the profits of the firm, and
(b)the beneficiary is chargeable to tax on those profits.
(2)References in this Part to a partner or member of the firm include references to the beneficiary.]
Textual Amendments
F3S. 848A inserted (with effect in accordance with Sch. 6 para. 4(1) of the amending Act) by Finance Act 2018 (c. 3), Sch. 6 para. 1