Corporation Tax Act 2009 section 382

Company partners using fair value accounting

Section 382 requires company partners that use fair value accounting for their partnership interest to determine their loan relationship credits and debits on the same fair value basis.

• This section applies where a company partner uses fair value accounting for its interest in a partnership.
• The credits and debits the company partner must bring into account are determined on a fair value accounting basis.
• This ensures consistency between the company's general accounting approach and its tax treatment of partnership loan relationships.
• Without this provision, there could be doubt as to whether the partnership rules required the company to follow its normal accounting method.