Income Tax (Trading and Other Income) Act 2005 section 608I

Application of Chapter to certain partnerships

Section 608I explains how the offshore receipts rules in Chapter 2A apply to certain partnerships that are treated as separate entities in countries with full tax treaties with the UK.

• Where a partnership is regarded as a separate entity in a full treaty territory, each partner is treated as being resident in that territory for the purposes of Chapter 2A.
• The question of whether a partner is resident in a particular territory is determined in accordance with the residence rules set out in section 608D(2).
• The general partnership assessment rules in section 848 and the wider provisions of Part 9 of the Act continue to apply alongside the Chapter 2A rules.
• This provision ensures that the offshore intangible property income rules work correctly in the context of partnerships that have a recognised legal identity in a treaty territory.