{
  "url": "https://openlegislation.uk/corporation-tax-act-2009/section-1264",
  "json_url": "https://openlegislation.uk/corporation-tax-act-2009/section-1264.json",
  "legislation": "ukpga/2009/4",
  "legislation_title": "Corporation Tax Act 2009",
  "legislation_url": "https://openlegislation.uk/corporation-tax-act-2009",
  "path": "section/1264",
  "kind": "section",
  "number": "1264",
  "heading": "Loss-making period in which some partners have profits",
  "text": "(1) For any accounting period of a firm, if—\n(a) the calculation under section 1259 in relation to a partner (“company A”) produces a loss, and\n(b) company A's share determined under section 1262 is a profit,\ncompany A's share of the loss of the trade is neither a profit nor a loss.\n(2) For any accounting period of a firm, if—\n(a) the calculation under section 1259 in relation to company A produces a loss,\n(b) company A's share determined under section 1262 is a loss, and\n(c) the comparable amount for at least one other partner is a profit,\ncompany A's share of the loss of the trade is the amount produced by the formula in subsection (3).\n(3) The formula is—\nFL×PLPL+TCLwhere—\nFL is the amount of the firm's loss calculated under section 1259 in relation to company A,\nPL is the amount determined under section 1262 to be company A's loss, and\nTCL is the total of the comparable amounts attributed to other partners under Step 3 in subsection (4) that are losses.\n(4) The comparable amount for each partner other than company A is determined as follows.\nStep 1\nTake the firm's loss calculated under section 1259 in relation to company A.\nStep 2\nDetermine in accordance with the firm's profit-sharing arrangements during the relevant accounting period the shares of that loss that are attributable to each of the other partners.\nStep 3\nEach such share is the comparable amount for the partner to whom it is attributed.\n(5) In subsections (2) to (4) “partner” means any partner in the firm, whether or not within the charge to corporation tax.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "C",
      "label": "C1",
      "text": "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)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2009/4/section/1264",
    "retrieved_at": "2026-10-29T09:11:19.560467+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}