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

Exemption where income of opaque partnership taxable in full treaty territory

Section 608MA provides an exemption from UK tax on certain income where an opaque partnership (one treated as a separate entity from its partners for tax purposes) is resident in a full treaty territory and its UK-derived income is taxable there.

• This section applies to partnerships that are treated as separate legal entities from their partners under the tax laws of a full treaty territory.
• The partnership must be resident in that territory for the entire tax year, earning UK-derived amounts that are taxable under the territory's laws.
• Where the conditions are met, the partner's share of UK-derived amounts is disregarded for the purposes of the UK income tax charge under section 608A.
• Residence of the partnership in the territory is determined by reference to the specific conditions set out in section 608D(2).

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