Income Tax (Trading and Other Income) Act 2005 section 94C

Provisions not applicable to certain firms

Section 94C excludes certain partnerships from using the simplified fixed rate deductions available under Chapter 5A, specifically where any partner in the firm is not an individual.

• The simplified expense rules in Chapter 5A are not available to all partnerships
• If any partner in the firm was not an individual (e.g. a company or corporate body) at any time during the period, the Chapter 5A provisions cannot be used
• The restriction applies for the entire period if even one partner was a non-individual at any point during that period
• Partnerships made up entirely of individual partners remain eligible to use the fixed rate deductions