Section 850 | Allocation of firm's profits or losses between partners ^F1

(1)For any period of account a partner's share of a profit or loss of a trade carried on by a firm is determined for income tax purposes in accordance with the firm's profit-sharing arrangements during that period.This is subject to sections 850A to 850D and section 12ABZB of TMA 1970 (partnership return is conclusive).^F2F3

(2)In this section and sections 850A and 850B “profit-sharing arrangements” means the rights of the partners to share in the profits of the trade and the liabilities of the partners to share in the losses of the trade.