Corporation Tax Act 2010

880Apportionment of payments made and of sums obtained
This section has no associated Explanatory Notes

(1)This section applies for the purposes of this Chapter.

(2)Subsection (3) applies if—

(a)a payment is made,

(b)it is one for which a deduction by way of relevant tax relief is allowed, and

(c)it is made by persons carrying on a trade, profession or vocation in partnership.

(3)The payment must be apportioned in a manner which is just and reasonable.

(4)Subsection (5) applies if—

(a)a sum is obtained in respect of an interest in an asset,

(b)the sum is obtained by persons carrying on a trade in partnership, and

(c)the asset is and continues to be used for the purposes of the trade.

(5)The sum must be apportioned between the partners in the shares in which they are entitled to the profits of the trade at the time the sum is obtained.

(6)Subsection (7) applies if—

(a)a sum is obtained in respect of an interest in an asset, and

(b)the sum is obtained by persons jointly entitled to the interest.

(7)The sum must be apportioned according to their respective rights in the interest.

(8)Subsections (6) and (7) are subject to subsections (4) and (5).