Corporation Tax Act 2010 section 357WE

Sections 357WC and 357WD: interpretation

Section 357WE explains how to interpret the rules for calculating Northern Ireland profits and losses when they are applied to partnerships (firms), for both SMEs and large companies.

• When the SME rules (Chapter 6) or large company rules (Chapter 7) for Northern Ireland profits are applied to partnerships, key terminology must be adapted: "qualifying trade" becomes the firm's trade, "company" becomes the firm, and "accounting period" becomes the firm's accounting period.
• References to a qualifying trade under the standard company definitions are replaced by references to a qualifying partnership trade under the equivalent partnership definitions.
• These adaptations apply equally whether the firm qualifies because it carries on a trade wholly in Northern Ireland or because it carries on a trade partly in Northern Ireland.
• For large company partnerships, there is an additional adaptation: a reference to a "UK resident company" in the allowable deductions rules is read as a reference to a "UK resident firm".