Arrangements involving partners and owners

Heading: added, on 1 April 2008, by section 17(1) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).

Heading: amended, on 1 April 2017, by section 122(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

GB 50 Arrangements involving partners and owners
When this section applies

(1)

This section applies when—

(a)

a partner of a partnership or an owner of a look-through company enters into an arrangement; and

(b)

the arrangement involves an amount of consideration (the arrangement amount of consideration) that is not a market value amount of consideration; and

(c)

the arrangement has a purpose or effect of defeating the intent and application of subparts HB and HG (which relate to joint venturers, partners, partnerships, and look-through companies).

Market value amount substituted

(2)

A market value amount of consideration is substituted for the arrangement amount of consideration.

Defined in this Act: amount, arrangement, look-through company, partner, partnership

Section GB 50: added, on 1 April 2008, by section 17(1) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).

Section GB 50 heading: amended, on 1 April 2017, by section 122(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section GB 50(1)(a): replaced, on 1 April 2017, by section 122(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section GB 50(1)(c): amended, on 1 April 2017, by section 122(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section GB 50 list of defined terms look-through company: inserted, on 1 April 2017, by section 122(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).