Commentary on Sections Overview Overview Section 111: Meaning of “contribution to the firm”
372.This section sets out details of what is included in determining the individual’s contribution to the firm. It is based on section 118ZG of ICTA.
373.There is a change from “contribution to the trade” in the source legislation to “contribution to the firm”. See the overview commentary on this Chapter and Change 16 in Annex 1.
374.The definition differs slightly from the definition of “contribution to the firm” for limited partners. The definition for a non-active partner includes a reference to any additional amount contributed on a winding-up, whereas the definition for a limited partner includes no such reference, as a limited partner is under no obligation to contribute any amounts beyond the amount originally agreed as the required contribution.