Section 880 — Corporation Tax Act 2010: Apportionment of payments made and of sums obtained

Apportionment of payments made and of sums obtained 880 1 This section applies for the purposes of this Chapter.

2 Subsection (3) applies if—

a a payment is made, b it is one for which a deduction by way of relevant tax relief is allowed, and c it is made by persons carrying on a trade, profession or vocation in partnership.

3 The payment must be apportioned in a manner which is just and reasonable.

4 Subsection (5) applies if—

a a sum is obtained in respect of an interest in an asset, b the sum is obtained by persons carrying on a trade in partnership, and c the asset is and continues to be used for the purposes of the trade.

5 The sum must be apportioned between the partners in the shares in which they are entitled to the profits of the trade at the time the sum is obtained.

6 Subsection (7) applies if—

a a sum is obtained in respect of an interest in an asset, and b the sum is obtained by persons jointly entitled to the interest.

7 The sum must be apportioned according to their respective rights in the interest.

8 Subsections (6) and (7) are subject to subsections (4) and (5).