Annex 1: Minor Changes in the Law Change 88: Partnerships: change of basis: Schedule 1 This Act
Section 1267 of this Act applies explicitly to property businesses and rewrites the FA 2002 rules (as applied by section 21B of ICTA). Schedule 1 to this Act amends section 860 of ITTOIA to fill the gap left by ITTOIA and to bring the income tax and corporation tax codes back into line.
The change does not affect the total amount charged to income tax on a change of basis. It makes more certain what each partner’s share of that amount is. If a partner was able to take advantage of any uncertainty in ITTOIA and argue that the partner’s share should be less than that previously prescribed by ICTA and FA 2002, the change in this Act is adverse to that partner. But in that case the change is necessarily favourable to the other partners.
This change is in principle and in practice adverse to some taxpayers and favourable to others. But the numbers affected and the amounts involved are likely to be small.