Section 1262 — Corporation Tax Act 2009: Allocation of firm's profits or losses between partners

Allocation of firm's profits or losses between partners 1262 1 For any accounting period of a firm a partner's share of a profit or loss of a trade carried on by the firm is determined for corporation tax purposes in accordance with the firm's profit-sharing arrangements during that period. This is subject to sections 1263 to 1264A and section 12ABZB of TMA 1970 (partnership return is conclusive) .

2 If a firm makes qualifying charitable donations , a partner's share of the donations is determined for corporation tax purposes in accordance with the firm's profit-sharing arrangements during the accounting period of the firm in which the donations are made . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4 In this section and sections 1263 and 1264 “ profit-sharing arrangements ” means the rights of the partners to share in the profits of the trade and the liabilities of the partners to share in the losses of the trade.