{
  "url": "https://openlegislation.uk/income-tax-trading-and-other-income-act-2005/section-850B",
  "json_url": "https://openlegislation.uk/income-tax-trading-and-other-income-act-2005/section-850B.json",
  "legislation": "ukpga/2005/5",
  "legislation_title": "Income Tax (Trading and Other Income) Act 2005",
  "legislation_url": "https://openlegislation.uk/income-tax-trading-and-other-income-act-2005",
  "path": "section/850B",
  "kind": "section",
  "number": "850B",
  "heading": "Loss-making period in which some partners have profits",
  "text": "(1) For any period of account, if—\n(a) the calculation under section 849 in relation to a partner (“A”) produces a loss, and\n(b) A's share determined under section 850 is a profit,\nA's share of the loss of the trade is neither a profit nor a loss.\n(2) For any period of account, if—\n(a) the calculation under section 849 in relation to A produces a loss,\n(b) A's share determined under section 850 is a loss, and\n(c) the comparable amount for at least one other partner is a profit,\nA'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 849 in relation to A,\nPL is the amount determined under section 850 to be 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 A is determined as follows.\nStep 1\nTake the firm's loss calculated under section 849 in relation to A.\nStep 2\nDetermine in accordance with the firm's profit-sharing arrangements during the relevant period of account 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 chargeable to income tax.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Ss. 850-850B substituted for s. 850 (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 640 (with Sch. 2 Pts. 1, 2)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2005/5/section/850B",
    "retrieved_at": "2026-10-29T09:16:32.370392+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."
}