This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Partnership Manual

Partner's basis periods

S854 Income Tax (Trading and Other Income) Act 2005 (ITTOIA 2005)


The basis of assessment for the shares of other income allocated to each partner depends on whether that income is:

taxed income - see PM163520 - or untaxed income - see PM163510, and on whether the partnership is:

  • a trading or professional partnership, or
  • a partnership with an investment business (that is, a business which is not a trade or profession) - see PM163130.

For these purposes ‘untaxed income’ is income that is not:

  • income from which Income Tax has been deducted, or
  •  income from, or on which, Income Tax is treated as having been deducted or paid, or
  • dividends and other distributions of a company chargeable to Income Tax under Pt4 Ch3 ITTOIA 2005.