[850C Excess profit allocation to non-individual partners]
Income Tax (Trading and Other Income) Act 2005 (2005 c 5) | Legislation

[850C  Excess profit allocation to non-individual partners]

[(1)     Subsections (4) and (5) apply if—

(a)     for a period of account (“the relevant period of account”)—

(i)     the calculation under section 849 in relation to an individual partner (“A”) (see subsection (6)) produces a profit for the firm, and

(ii)     A's share of that profit determined under section 850 or 850A (“A's profit share”) is a profit or is neither a profit nor a loss,

(b)     a non-individual partner (“B”) (see subsection (6)) has a share of the profit for the firm mentioned in paragraph (a)(i) (“B's profit share”) which is a profit (see subsection (7)), and

(c)     condition X or Y is met.

(2)     Condition X is that it is reasonable to suppose that—

(a)     amounts representing A's deferred profit (see subsection (8)) are included in B's profit share, and

(b)     in consequence, both A's profit share and the relevant tax amount (see subsection (9)) are lower than they would otherwise have been.

(3)     Condition Y is that—

(a)     B's profit share exceeds the appropriate notional profit (see subsections (10) to (17)),

(b)     A has the power to enjoy B's profit share (“A's power to enjoy”) (see subsections

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