PM243000 | Commencement

The Mixed Membership Partnership legislation applies to periods of account commencing on or after 6 April 2014. This can be found in paragraphs 11-13, Schedule 17 FA 2014

There are special rules which apply where a period of account begins before 6 April 2014 and ends on or after 6 April 2014.

The first period that can be considered is from 6 April 2014 to the end of that period of account. If the Mixed Membership Partnership legislation does not apply, then no action is needed.

If the Mixed Membership Partnership legislation does apply, then the profits have to be calculated as if there were two notional periods of account, one ending on 5 April 2014 and the second commencing on 6 April 2014.

The notional periods of account are only to be taken into account for the purposes of the mixed membership partnership rules.

The profits should be split between the periods on a just and reasonable basis. In many cases a simple time apportionment will produce a just and reasonable allocation.