PM163480 - Allocation of income

S850, S851 Income Tax (Trading and Other Income) Act 2005

The other income (or loss) for any period of account is allocated to the individual partners according to the commercial sharing arrangements in force for that period. As with trading income the allocation process cannot create or increase a loss - see PM163050.

Where a partner is an indirect partner in a partnership these rules also apply to the other income allocated to the indirect partner.