Commentary

71.5 Charge for labour input

AGRICULTURE vol 2(2)
| Commentary

71.5 Charge for labour input

| Commentary

71.5 Charge for labour input

Where the non-landowning partner is carrying out the day-to-day management of the business, the partners may agree to his taking a prior charge out of profits to reflect his labour input. This is usually of a comparable figure to a ‘salary’ if he were otherwise employed by the partnership to undertake such work. Any such charge is, however, taxed as a tranche of profits under Schedule D Case 1.

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