B7.510 Calculation of general partner's tax liability
Partnership profits/losses are allocated to the separate partners in accordance with the agreed profit share arrangements, see B7.501 onwards. The profits and losses are then assessed to tax on the partners with the assessments depending on whether the partner is a corporate, non-corporate or indirect partner as discussed below.
Individual partners income tax—post basis period reforms and transition year
Following the basis period reforms which have a transition year of 2023/24 and come into effect in 2024/25, individual partners are assessed to their share of trading profits or losses on a tax year basis1 in the same manner as sole traders, see details in B8.101A. Where the period for which the partnership makes up accounts does not coincide with the tax year, the profit or losses are time apportioned. The concept of notional trades for partners therefore ceases to be relevant from 2024/25 and the rules prior to the basis periods as set out in ITTOIA 2005, ss 852–856 are repealed. The 2023/24 and 2024/25 basis of assessment
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