Section 1262 | Allocation of firm's profits or losses between partners

(1)For any accounting period of a firm a partner's share of a profit or loss of a trade carried on by the firm is determined for corporation tax purposes in accordance with the firm's profit-sharing arrangements during that period.This is subject to sections 1263 to 1264A and section 12ABZB of TMA 1970 (partnership return is conclusive).^F1F2

(2)If a firm makes qualifying charitable donations, a partner's share of the donations is determined for corporation tax purposes in accordance with the firm's profit-sharing arrangements during the accounting period of the firm in which the donations are made.^F3F4F5

(3)Repealed^F6

(4)In this section and sections 1263 and 1264 “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.