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HMRC internal manual

Partnership Manual

PM163040 - Allocation of profits and losses

S850 Income Tax (Trading and Other Income) Act 2005, S1262 Corporation Tax Act 2009.

The tax adjusted partnership profits or losses for a period of account are allocated to the partners according to the commercial profit sharing arrangement in force for the relevant period.

If the partnership business comprises two or more sources of trading income, the profits from each source should be allocated separately to each partner.