Section 357GB | Application of this Part in relation to partnerships F1
From legislation.gov.uk
(1)This section applies if a firm (within the meaning of CTA 2009) carries on a trade and any partner in the firm is a company within the charge to corporation tax.Such a partner is referred to in this section as a “corporate partner”.
(2)Subject to the following provisions of this section, this Part applies in relation to the firm as it applies in relation to a company.
(3)Any election under this Part—
(a)may be made or revoked not by the firm but instead by any one or more of the corporate partners (whether jointly or otherwise), and
(b)has effect in relation to each corporate partner making or revoking it as if made or revoked by the firm.
(4)Accordingly, any reference in section 357G(3) or 357GA(3) (time limit for making or revoking elections under section 357A) to the company making or revoking the election is to be read as a reference to the corporate partner so doing.
(5)Section 1261 of CTA 2009 (accounting periods of firms) applies for the purposes of this Part as it applies for the purposes of Part 17 of that Act.
(6)Section 357B (meaning of “qualifying company”) has effect as if in subsection (1) the words “in the case of a company that is a member of a group” were omitted.
(7)For the purposes of this Part the firm meets the development condition in relation to a right to which this Part applies if—
(a)the firm has at any time carried out qualifying development in relation to the right, or
(b)there is a relevant corporate partner in the firm who meets the development condition in relation to the right.
(8)A “relevant corporate partner” is a corporate partner who is entitled to a share of at least 40% of the profits or losses of the firm for any accounting period of the firm.
(9)Section 357BD applies for the purposes of subsection (7)(a) of this section as it applies for the purposes of section 357BC.
(10)Section 357BE (active ownership condition) has effect as if the reference in subsection (4) to section 357BC(2) or (3) included a reference to subsection (7)(a) of this section.
(11)Sections 357BK, 357BKA 357CL and 357CM (election for small claims treatment) have effect as if—F2
(a)any reference to a company having one or more associated companies were a reference to any corporate partner in relation to which an election under section 357BK or 357CL has effect having one or more associated companies, andF3
(b)any reference to a company having no associated company were a reference to each such corporate partner having no associated company.
(12)Subsection (13) applies where a corporate partner is a party to an arrangement at any time during an accounting period of the firm which produces for the corporate partner a return within section 357BG(1)(c) .F4
(13)For the accounting period of the firm the corporate partner's share of a profit or loss of a trade carried on by the firm is determined for corporation tax purposes as if no election under section 357A had effect in relation to the trade.