CTM61587 - Close companies: arrangements conferring benefits on participators: TAAR: benefit conferred: partnerships: interaction CTA10/S464A and mixed member rules S850C/ITTOIA05

There may be cases where amounts which have been allocated to a corporate partner meet the conditions to be within S464A CTA 2010, and also meet the conditions at S850C ITTOIA 2005, the mixed member rules.

A reallocation under S850C will result in profits being reallocated from a corporate partner to one or more individual partners. Amounts which are reallocated under s850C(4) will be charged to Income Tax on the individual(s). Any amounts which have been reallocated and charged to IT will not fall to be charged under S464A, see S464A(2)(b).

If there are amounts which fall within S464A, and exceed the amounts charged to IT under S850C, these amounts are still capable of falling within the legislation at S464A.

Before making an assessment under S464A or s850C, compliance staff should check with the relevant team to ensure that a previous assessment under the other provision has not already been made or the liability self-assessed.

See also PM211400.