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

(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).

(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.