Section 1267 — Corporation Tax Act 2009: Various rules for trades and property businesses

Various rules for trades and property businesses 1267 1 In the case of a trade or property business carried on by a firm, the amount of any adjustment under—

a Chapter 14 of Part 3 (adjustment on change of basis: trades), or b section 262 (giving effect to positive and negative adjustments: property businesses), is calculated as if the firm were a UK resident company.

2 Each partner's share of any amount brought into account as a receipt under Chapter 14 of Part 3, or section 262, is determined according to the firm's profit-sharing arrangements for the 12 months ending immediately before the date on which the new basis was adopted.

3 A change in the persons carrying on a trade from one period of account to the next does not prevent Chapter 14 of Part 3 applying in relation to the trade so long as a company carrying on the trade in partnership immediately before the change continues to carry it on in partnership after the change.

4 A change in the persons carrying on a property business from one period of account to the next does not prevent section 262 applying (by virtue of section 261) in relation to the property business so long as a company carrying on the property business in partnership immediately before the change continues to carry it on in partnership after the change.

5 Sections 1259 to 1264 do not apply so far as subsection (1) or (2) applies.