Introduction Overview Chapter 3: Limited partners and members of limited liability partnerships Section 57: Meaning of “contribution to the firm”
222.This section defines “contribution to the firm” for the purposes of section 56. It is based on section 118(3) of ICTA.
223.The subsections set out the steps necessary to calculate the “contribution to the firm”. The source legislation refers to a “contribution to the trade”. This change and some points of clarification are covered in the change note. See Change 8 in Annex 1.
224.Subsection (5) explains how amounts that have been drawn out or received back by the company but have been taxed as profits of a trade are to be excluded from the calculation. See Change 9 in Annex 1.