Corporation Tax Act 2009 (c. 4)

Part 17 U.K. Partnerships

Firms with a foreign element U.K.

1266 Resident partners and double taxation agreements U.K.

(1) This section applies if—

(a) a UK resident company (“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 [F1 section 2(1) of TIOPA 2010] (“the arrangements”) any of the income of the firm is relieved from corporation tax in the United Kingdom.

(2) The partner is liable to corporation tax on the partner's share of the income of the firm despite the arrangements.

F2 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) For the purposes of this section the members of a firm include any company which is entitled to a share of the income of the firm.

Textual Amendments

F1 Words in s. 1266(1)(b) substituted (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. 8 para. 101 (with Sch. 9 paras. 1-9, 22)

F2 S. 1266(3) omitted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 65(3)