Section 849 | Calculation of firm's profits or losses

(1)If—

(a)a firm carries on a trade, and

(b)any partner in the firm is chargeable to income tax,

the profits or losses of the trade are calculated on the basis set out in subsection (2) or (3), as the case may require.

(2)For any period of account in which the partner is a UK resident individual, the profits or losses of the trade are calculated as if the firm were a UK resident individual.

(3)For any period of account in which the partner is non-UK resident, the profits or losses of the trade are calculated as if the firm were a non-UK resident individual.

(3A)For any tax year that is a split year as respects the partner, this section has effect as if the partner were non-UK resident in the overseas part of the year.

(4)In calculating under subsection (2) or (3) the profits of a trade for any period of account no account is taken of any losses for another period of account.