Part 17Partnerships
Adjustment on change of basis
1267Various rules for trades and property businesses
(1)
In the case of a trade or property business carried on by a firm, the amount of any adjustment under—
(a)
Chapter 14 of Part 3 (adjustment on change of basis: trades), or
(b)
section 262 (giving effect to positive and negative adjustments: property businesses),
is calculated as if the firm were a UK resident company.
(2)
Each partner's share of any amount brought into account as a receipt under Chapter 14 of Part 3, or section 262, is determined according to the firm's profit-sharing arrangements for the 12 months ending immediately before the date on which the new basis was adopted.
(3)
A change in the persons carrying on a trade from one period of account to the next does not prevent Chapter 14 of Part 3 applying in relation to the trade so long as a company carrying on the trade in partnership immediately before the change continues to carry it on in partnership after the change.
(4)
A change in the persons carrying on a property business from one period of account to the next does not prevent section 262 applying (by virtue of section 261) in relation to the property business so long as a company carrying on the property business in partnership immediately before the change continues to carry it on in partnership after the change.
(5)
Sections 1259 to 1264 do not apply so far as subsection (1) or (2) applies.