Corporation Tax Act 2009

380Partnerships involving companiesU.K.

This section has no associated Explanatory Notes

(1)This section applies if—

(a)a trade or business is carried on by a firm,

(b)any of the partners in the firm is a company (a “company partner”), and

(c)a money debt is owed by or to the firm.

(2)In calculating the profits and losses of the trade or business for corporation tax purposes under section 1259 (calculation of firm's profits or losses), no credits or debits may be brought into account under this Part—

(a)in relation to the money debt, or

(b)in relation to any loan relationship that would fall to be treated for the purposes of the calculation as arising from the money debt.

(3)Instead, each company partner must bring credits and debits into account under this Part in relation to the debt or relationship for each of its accounting periods in which the conditions in subsection (1) are met.

(4)The following provisions of this Chapter contain special rules about the credits and debits to be brought into account under subsection (3)—

(a)section 381 (determinations of credits and debits by company partners: general),

(b)section 382 (company partners using fair value accounting),

(c)section 383 (lending between partners and the partnership),

(d)section 384 (treatment of exchange gains and losses), and

(e)section 385 (company partners' shares where firm owns deeply discounted securities).

(5)In those provisions “company partner” has the same meaning as in this section.