503. Firms with a foreign element.

Where:

  1.  

    (1)     a firm1 carries on a trade2 wholly or partly outside the United Kingdom3;

  2.  

    (2)     the control and management of the trade is outside the United Kingdom; and

  3.  

    (3)     the remittance basis applies4 to a partner for a tax year,

the partner's share of profits from the trade:

  1.  

    (a)     arising in the United Kingdom is determined in accordance with the general provisions relating to the calculation of partners' shares5;

  2.  

    (b)     arising outside the United Kingdom is treated as relevant foreign income such that the remittance basis will apply to it