[850D Excess profit allocation: cases involving individuals who are not partners]
Income Tax (Trading and Other Income) Act 2005 (2005 c 5) | Legislation

[850D  Excess profit allocation: cases involving individuals who are not partners]

[(1)     Subsections (4) and (5) apply if—

(a)     at a time during a period of account (“the relevant period of account”) in respect of a firm, an individual (“A”) personally performs services for the firm,

(b)     if A had been a partner in the firm throughout the relevant period of account, the calculation under section 849 in relation to A for the relevant period of account would have produced a profit for the firm,

(c)     a non-individual partner (“B”) in the firm (see subsection (6)) has a share of that profit (“B's profit share”) which is a profit (see subsection (7)),

(d)     it is reasonable to suppose that A would have been a partner in the firm at a time during the relevant period of account or any earlier period of account but for the provision contained in section 850C (see also subsections (8) to (10)), and

(e)     condition X or Y is met.

(2)

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