| Commentary

19.4 Loss relief

| Commentary

19.4 Loss relief

For income tax purposes each partner is treated as receiving his share of the partnership profits or losses as if they were profits or losses of a notional trade carried on by him alone1. Thus, where that notional trade has produced a trading loss, he is entitled to set that loss off in all the same ways which are open to a sole trader2.

Consequently, a partner in a general partnership may choose between carrying the loss across into the same tax year or back into the previous one, in either case setting it off against income from

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial