Taxation of Chargeable Gains Act 1992 Schedule 7AD paragraph 10

Interpretation

Paragraph 10 of Schedule 7AD provides definitions and interpretive rules for key terms used throughout the Schedule, covering limited partners, securities, partnership accounts and the treatment of partnership assets.

• A limited partner is someone registered under the Limited Partnership Act 1907, or an equivalent person under overseas law who cannot manage the business and whose liability is capped.
• Securities has the same meaning as in section 132 of the Act but also includes debentures; shares and securities are quoted or unquoted depending on whether they are listed on a recognised stock exchange.
• Partnership accounts must follow generally accepted accounting practice, and interest-free loans required of all limited partners and recorded as partners' capital or equity count as capital contributions.
• Assets of a Scottish partnership, or of any overseas partnership where assets are held by the partnership as such, are treated as held by the members in proportion to their profit-sharing entitlements.