Commentary on Sections Overview Chapter 4: Further provision about credits and debits to be brought into account Section 620: Determination of credits and debits by company partners
1697.This section determines the credits and debits to be brought into account under section 619(3) by each company partner in a firm. It is based on paragraph 49(3), (4), (5) and (6) of Schedule 26 to FA 2002.
1698.Subsections (2) to (4) attribute the actions of the firm to the partner for the purposes of applying the rules that determine the credits and debits to be brought into account in accordance with this Part.
1699.“Profit-sharing arrangements”, in relation to a partnership, is defined in section 710. A firm’s “profit-sharing arrangements” are described in section 1262, in the sections rewriting section 114 of ICTA, as “the rights of the partners to share in the profits of the trade and the liabilities of the partners to share in the losses of the trade”.