Corporation Tax Act 2010 section 416

Determining the percentage share in the profits or loss of business

Section 416 explains how to determine a company's percentage share in the profits or loss of a business for the purposes of this chapter.

• A company's percentage share in the profits or loss of a business must be determined on a just and reasonable basis.
• The determination should have regard to the factors that would be considered when allocating a firm's profits or losses between partners under the partnership rules in CTA 2009.
• The rules dealing with mixed profit and loss situations among partners (where some partners have profits while others have losses, or vice versa) are specifically excluded from this determination.
• The percentage share is assessed at a particular point in time, reflecting the company's position in the business at that moment.