Taxation (International and Other Provisions) Act 2010 section 259NE

Treatment of a person who is a member of a partnership

Section 259NE explains how the hybrid mismatch rules in Part 6A apply to individuals or entities that are members of partnerships, by treating their share of partnership income, profits or amounts as their own.

• Where a person is a member of a partnership, references to that person's income, profits or amounts under the hybrid mismatch rules include their share of the partnership's income, profits or amounts.
• The person's share of partnership income, profits or amounts is determined by dividing these between the partners on a just and reasonable basis.
• The definition of "partnership" is broad and includes entities established under the law of territories outside the United Kingdom that have a similar character to a UK partnership.
• The term "member" of a partnership is interpreted accordingly to cover members of both UK partnerships and equivalent foreign entities.