Modifications etc. (not altering text)
C1Pt. 7 modified (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 601, 1184(1) (with Sch. 2)
C2Pt. 7 modified (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 88(1)(2)(7) (with s. 147, Sch. 17)
C3Pt. 7 modified by 2007 c. 3, s. 809FZZ(8) (as inserted (with effect in accordance with s. 37(4) of the amending Act) by Finance Act 2016 (c. 24), s. 37(2))
(1)The credits and debits to be brought into account under section 619(3) are to be determined separately for each company partner as follows.
(2)The contract entered into or acquired by the firm is treated as if it were instead entered into or acquired by the company partner for the purposes of the trade or business which the company partner carries on.
(3)Anything done by or in relation to the firm in connection with the contract is treated as done by or in relation to the company partner.
(4)So far as exchange gains or losses arising from the contract are recognised in the firm's—
(a)statement of total recognised gains and losses,
(b)statement of recognised income and expense,
(c)statement of changes in equity, or
(d)statement of income and retained earnings,
they are treated as if they had been recognised in the corresponding statement of the company partner.
(5)The credits and debits in the case of each company partner are the partner's appropriate share of the total credits and debits determined in accordance with subsections (2) to (4).
(6)A company partner's “appropriate share” is the share which would be apportioned to it on the assumption in subsection (7).
(7)The assumption is that the total credits and debits determined in accordance with subsections (2) to (4) are apportioned between the partners in the shares in which any profit or loss would be apportioned between them in accordance with the firm's profit-sharing arrangements.