Corporation Tax Act 2009 section 840

Partnerships

Section 840 explains how a person's membership of a partnership (firm) is treated for the purposes of the related party rules governing intangible fixed assets.

• A person's rights and powers as a member of a firm are disregarded unless they have control of, or a major interest in, that firm.
• Whether a person has control or a major interest in a firm is assessed using the same tests that apply to companies under sections 836 to 839.
• When applying those company-focused tests, references to "any other company" are read as also covering any other firm.
• This ensures that partnership interests are only relevant in the related party analysis where the person holds a sufficiently significant stake in the firm.