Commentary

19.2 Rates of tax and basis of assessment

BUSINESSES vol 4(2) start-up, sale and purchase
| Commentary

19.2 Rates of tax and basis of assessment

| Commentary

19.2 Rates of tax and basis of assessment

A partner, like any other individual, is subject to income tax at the usual rates on his chargeable income for the relevant tax year1. His share of the profits or losses of the partnership business is likely to be but one element in that income.

As mentioned above, his share of the partnership profits or losses will be treated as deriving from a notional trade which he carries on alone and the relevant ‘basis period’ for ascertaining this for any particular year will depend upon the basis period for the

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