Section 447 | Partnerships and other transparent entities ^F1

(1)Subsections (2) to (4) apply where a company is a member of a partnership.

(2)For the purposes of section 433 the cases in which assets recognised in a balance sheet of the company are regarded as deriving their value from the matters mentioned in subsection (5)(a) to (e) of that section include any case where—

(a)the company's interest in the partnership is recognised in the balance sheet of the company, and

(b)that partnership interest derives its value from those matters.

(3)For the purposes of section 436 the cases in which an entry in respect of an asset is (or would be) recognised in a balance sheet of the company include any case where—

(a)the asset is (or would be) recognised in a balance sheet of the partnership, and

(b)the company has a significant interest in the partnership.

(4)For the purposes of section 438(4)—

(a)the obligations mentioned there include any case where the obligations are those of the partnership, and

(b)references to a qualifying infrastructure company in that case include the partnership.

(5)Subsections (2) to (4) apply (with any necessary modifications) in relation to transparent entities that are not partnerships as they apply in relation to partnerships.

(6)For the purposes of this section an entity is “transparent” if—^F2

(a)it is not chargeable to corporation tax or income tax as a person (ignoring any exemptions), or^F2

(b)it is a collective investment vehicle which is “transparent for income tax purposes” for the purposes of paragraph 8 of Schedule 5AAA to TCGA 1992 (see paragraph 8(7) of that Schedule).^F2