Income Tax (Trading and Other Income) Act 2005 Schedule 2 paragraph 9

Partnerships involving companies

Paragraph 9 of Schedule 2 explains how references to persons and companies in the Act should be read when a partnership includes both companies and non-company partners, so that the law continues to apply consistently.

• Where the Act refers to "any person", this includes all partners in a mixed partnership containing at least one company chargeable to corporation tax
• Where the Act refers to a "company" or "other person", this includes all partners in a mixed partnership containing at least one non-company partner
• Both rules operate only to the extent necessary to preserve continuity of the law
• The provision ensures no gap arises in the tax treatment of mixed partnerships involving both companies and individuals or other non-corporate entities