Section 842 | UK Economic Interest Groupings and European Economic Interest Groupings

(1)The following rules about UK Economic Interest Groupings and European Economic Interest Groupings apply for the purposes of charging income tax—Rule 1A grouping is treated as acting as the agent of its members.Rule 2The activities of a grouping are treated as those of its members acting jointly.Rule 3Each member of a grouping is treated as having a share of the grouping's property, rights and liabilities.Rule 4Any trade or profession carried on by the grouping is treated as carried on in partnership by the members of the grouping.

(2)For the purposes of Rule 3, a member's share of any property, rights or liabilities of a grouping is determined according to the contract under which the grouping is established.

(3)If the contract does not provide for this, the member's share is determined by reference to the share of the profits of the grouping to which the member is entitled under the contract.

(4)If the contract does not provide for this either, the members are treated as having equal shares of the property, rights and liabilities of the grouping.

(5)“European Economic Interest Grouping” means a grouping registered in a member State and formed in pursuance of Council Regulation (EEC) No. 2137/85 of 25 July 1985 on the European Economic Interest Grouping as it has effect in EU law.