Section 863E | M's contribution to the limited liability partnership: the basic calculation ^F1

(1)For the purposes of condition C in section 863D M's contribution to the limited liability partnership at a time is amount A.

(2)Amount A is the total amount which M has contributed to the limited liability partnership as capital less so much of that amount (if any) as is within subsection (6).

(3)In particular, M's share of any profits of the limited liability partnership is to be included in the amount which M has contributed to the partnership as capital so far as that share has been added to the partnership's capital.

(4)In subsection (3) the reference to profits is to profits calculated in accordance with generally accepted accounting practice (before any adjustment required or authorised by law in calculating profits for income tax purposes).

(5)Subsection (3) applies as well for the purpose of construing references to contributions to the capital of the limited liability partnership in sections 863D(12)(a) and 863F.

(6)An amount of capital is within this subsection if it is an amount which—

(a)M has previously drawn out or received back,

(b)M is or may be entitled to draw out or receive back at any time when M is a member of the limited liability partnership, or

(c)M is or may be entitled to require another person to reimburse to M.

(7)In subsection (6) any reference to drawing out or receiving back an amount is to doing so directly or indirectly.