504. Special provisions for computing profits and losses.

If a firm1 carries on a trade2 and any partner in the firm ('the partner') is a company within the charge to corporation tax3, then for any accounting period4 of the firm, the amount of the profits of the trade ('the amount of the firm's profits') is taken to be the amount determined, in relation to the partner, in accordance with either of the rules set out below5.

If the partner is UK resident6, there should be determined what would be the amount of the profits of the trade chargeable to corporation tax for that period if a UK resident