Taxation of Chargeable Gains Act 1992 section 271C

Trade or profession carried on in partnership

Section 271C sets out special rules for determining who acts as the UK representative of a non-UK resident partner when a trade or profession is carried on in partnership in the United Kingdom.

• Where a partnership operates in the UK through a branch or agency, that branch or agency is treated as the UK representative of any non-UK resident partner for capital gains tax purposes.
• Where a partnership carrying on a trade in the UK includes both UK-resident and non-UK-resident members, the partnership itself is treated as the UK representative of any non-UK resident partner.
• Both the branch or agency rule and the partnership rule can apply simultaneously, meaning the non-UK resident partner may have more than one UK representative.
• As a consequence of the partnership being treated as a UK representative, all partners become jointly liable for capital gains tax on the chargeable gains of the non-UK resident partner.