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HMRC internal manual

Business Income Manual

Partnerships - computation and assessment: other income: partner’s basis period: taxed income

S849-S851 Income Tax (Trading and Other Income) Act 2005

Taxed income is computed and allocated to partners in the same way as trading income (see BIM82275 and BIM82280). But there are no special basis period rules for taxed income. Instead an actual (6 April to 5 April) basis of assessment applies as if the income had arisen to the partner from a personal source rather than from the partnership.

This rule only applies to taxed income other than trading income. It does not apply to any form of trading receipt that may have tax deducted at source (for example, income which has suffered tax under the Construction Industry Scheme). Credit for the tax deducted from such a trading receipt is given for the tax year in which it is deducted.