Corporation Tax Act 2009 section 620

Determination of credits and debits by company partners

Section 620 sets out how credits and debits from derivative contracts held by a partnership are determined separately for each company partner in the firm.

• Credits and debits from a firm's derivative contracts are determined separately for each company partner, as if the contract had been entered into by the company partner directly
• Any actions taken by or in relation to the firm in connection with the derivative contract are treated as if they had been carried out by or in relation to the company partner itself
• Exchange gains or losses recognised in the firm's financial statements (such as the statement of total recognised gains and losses, statement of changes in equity, or equivalent) are treated as though they appeared in the corresponding statement of the company partner
• Each company partner's share of the total credits and debits is their "appropriate share", determined by reference to the firm's profit-sharing arrangements — that is, the proportions in which profits or losses would be divided among the partners