Taxes Management Act 1970 section 12AB

Partnership return to include partnership statement

Section 12AB sets out the requirements for partnership statements that must be included within partnership returns, covering income, losses, disposals and tax deductions, along with special rules for partnerships that are themselves partners in other partnerships.

• Every partnership return must include a partnership statement showing income or loss from each source, consideration from disposals of partnership property, income tax deducted or treated as deducted, and each partner's share of those amounts.
• Where the reporting partnership is itself a partner in another partnership carrying on a trade, profession or business, the income, losses, disposal proceeds and tax from that other partnership must be reported as separate sources within the partnership statement.
• If one of the partners in the reporting partnership is itself a partnership (a "participating partnership"), the partner share figures must be calculated four times — assuming the participating partnership is a UK resident individual, a non-UK resident individual, a UK resident company, and a non-UK resident company respectively.
• The four-way calculation requirement can be reduced if the return names all indirect partners and provides sufficient information about their type and residency, making it clear that certain categories of partner do not exist within the structure.