Corporation Tax Act 2010 section 58

Meaning of "limited partner"

Section 58 defines what "limited partner" means for the purposes of the restrictions on loss relief for limited partners set out in sections 56 and 57.

• A company is a limited partner if it is registered as such under the Limited Partnerships Act 1907, or if it effectively behaves as a limited partner in a firm, or if it meets equivalent conditions under the law of a territory outside the United Kingdom.
• A company is treated as acting in substance as a limited partner if it has no right to manage the trade and is entitled to have its trade liabilities met or reimbursed by another person.
• A company trading jointly with others under foreign law qualifies as a limited partner if that law prevents it from managing the trade and limits its liability for trade debts beyond a certain amount.
• Where a company is a limited partner under the foreign law route, references to "the firm" in sections 56 and 57 are read as references to the relationship between that company and the other persons it trades with jointly.