Section 1262 Allocation of firm's profits or losses between partnersC1

United Kingdom

C2(1)

For any accounting period of a firm a partner's share of a profit or loss of a trade carried on by the firm is determined for corporation tax purposes in accordance with the firm's profit-sharing arrangements during that period.

This is subject to sections 1263 F1to 1264A F2and section 12ABZB of TMA 1970 (partnership return is conclusive).

(2)

If a firm F3makes qualifying charitable donations, a partner's F4share of the donations is determined for corporation tax purposes in accordance with the firm's profit-sharing arrangements during the accounting period of the firm in which the F5donations are made.

F6(3)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)

In this section and sections 1263 and 1264 “profit-sharing arrangements” means the rights of the partners to share in the profits of the trade and the liabilities of the partners to share in the losses of the trade.

Annotations

Textual amendments

F1: Words in s. 1262(1) substituted (retrospective to 5.12.2013 and with effect in accordance with Sch. 17 paras. 12, 13 of the amending Act) by Finance Act 2014 (c. 26), Sch. 17 paras. 10(2), 11
F2: Words in s. 1262(1) inserted (with effect in accordance with Sch. 6 para. 14 of the amending Act) by Finance Act 2018 (c. 3), Sch. 6 para. 12
F3: Words in s. 1262(2) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 691(2)(a) (with Sch. 2)
F4: Words in s. 1262(2) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 691(2)(b) (with Sch. 2)
F5: Words in s. 1262(2) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 691(2)(c) (with Sch. 2)
F6: S. 1262(3) repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 691(3), Sch. 3 Pt. 1 (with Sch. 2)

Modifications

C1: Ss. 1259-1265 modified (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 765(2), 768(4), 1184(1) (with Sch. 2)
C2: S. 1262(1) applied by 2010 c. 4, s. 357WH (as inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1)

Notes on Part 17

Modifications

C1: Pt. 17 applied (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), s. 291