Section 357WBB | Section 357WBA: supplementary ^F1F2

(1)References in section 357WBA or this section to a partner in the firm include any person entitled to a share of income of the firm.

(2)In determining for the purposes of section 357WBA the amount of working time that is spent in any place by a partner in the firm, time spent by the partner in that place is to be included where—

(a)the time is spent by the partner in providing services to a person other than the firm (“the third party”), and

(b)condition A or B is met.

(3)Condition A is that the provision of the services results in a payment being made (whether directly or indirectly) to the firm by—

(a)the third party, or

(b)a person connected with the third party.

(4)Condition B is that—

(a)the firm holds a right that it acquired (whether directly or indirectly) from the partner, and

(b)any payment in connection with that right is made (whether directly or indirectly) to the firm by—

(i)the third party, or

(ii)a person connected with the third party.

(5)Section 1122 (connected persons) applies for the purposes of this section.

(6)References in section 357WBA to deductions made in respect of the members of the firm's workforce in calculating profits of the firm's trade include, in relation to a partner in the firm, the appropriate notional consideration for services provided by the partner (see subsections (7) and (8)).

(7)For the purposes of subsection (6), “the appropriate notional consideration for services” provided by a partner is—

(a)the amount which the partner would receive in consideration for services provided to the firm by the partner during the period in question, were the consideration to be calculated on the basis mentioned in subsection (8), less

(b)any amount actually received in consideration for such services which is not included in the partner's profit share.

(8)The consideration mentioned in subsection (7)(a) is to be calculated on the basis that the partner is not a partner in the firm and is acting at arm's length from the firm.