Corporation Tax Act 2009 section 1261

Accounting periods of firms

Section 1261 explains how to determine the accounting periods of a partnership (referred to as a "firm") for corporation tax purposes, by treating the firm as if it were a company.

• A firm's accounting period is the period that would apply if the firm were a UK-resident company (the "deemed company")
• An accounting period begins when a company first joins the partnership and starts carrying on the trade
• An accounting period ends when the last company leaves the partnership, or when there is a complete change in corporate membership so that no company present before the change remains afterwards
• For the purpose of calculating a specific partner's share of profits, the deemed company is treated as having the same tax residence as that partner