PM219000 | Condition Y

Condition Y applies where:

• the non-individual member’s profit share exceeds its appropriate notional profit (see PM220000);

• the individual member has the power to enjoy the profit share allocated to the non-individual member (see PM224000); and

• it is reasonable to suppose that the non-individual member’s profit share is, in part at least, attributable to the individual member’s power to enjoy it (see PM228000)

The fact that the Condition was not met in a particular period does not mean that it will not be met later even if the members of the partnership and ownership of the non-individual member remain the same.

It is therefore important to check every period.