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PM220000 | Appropriate notional profit

From HM Revenue & Customs · Partnership Manual

S850C (3)(a) ITTOIA 2005

For the legislation to apply, the profit share of the non-individual member has to exceed the appropriate notional profit.

The appropriate notional profit is made up of two elements:

  • the appropriate notional return on capital (see PM221000); and

  • the appropriate notional consideration for services (see PM222000)