Commentary on Sections Overview
3177.This Part contains the rules that apply to partnerships. The corresponding rules for income tax are in Part 9 of ITTOIA.
3178.Section 1 of the Partnership Act 1890 defines partnership as “the relation which subsists between persons carrying on a business in common with a view of profit”. Section 4 of the Partnership Act 1890 explains that “firm” is the term used for the purposes of that Act for persons in partnership.
3179.The sections in this Act follow the Partnership Act 1890 and refer to the partners collectively as a “firm”. But the word “partnership” is commonly used as a synonym for “firm”. So the title of the Part and some of the titles of the sections use the word “partnerships”, again following the lead of the Partnership Act 1890.
3180.The rules in this Part determine each partner’s share of the income of the firm. That income share is then charged under the normal rules for the type of income concerned.