Finance Act, 1965

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PART VIII.

Trades, Professions and Vocations carried on in Partnership: Income Tax and Sur-tax.

Interpretation (Part VIII).

49.—(1) In this Part of this Act—

“annual payment” means any payment from which, apart from any insufficiency of profits or gains of the person making it, tax is deductible under Rule 19 of the General Rules;

“balancing charge” means a balancing charge under Part V of the Finance Act, 1959 ;

“basis period” means, in relation to a year of assessment, the period on the profits or gains of which income tax for that year falls to be finally computed under Case I of Schedule D in respect of the trade in question or, where, by virtue of any Act, the profits or gains of any other period are to be taken to be the profits or gains of the said period, that other period;

“capital allowance” means any allowance, other than an allowance falling to be made in computing profits or gains, under Rule 6 of the Rules applicable to Cases I and II of Schedule D, section 5 or section 6 of the Finance Act, 1946 , Part V of the Finance Act, 1956 , Part IV of the Finance (Miscellaneous Provisions) Act, 1956 , Part V of the Finance Act, 1957 , or Part V or section 74 of the Finance Act, 1959 ;

“partnership trade” means a trade which is carried on by two or more persons in partnership;

“precedent partner” means in relation to a partnership the partner who, being resident in the State—

(a) is first named in the partnership agreement, or

(b) if there is no agreement, is named singly or with precedence to the other partners in the usual name of the firm, or

(c) is the precedent acting partner, if the person named with precedence is not an acting partner,

and any reference to precedent partner shall, in a case in which no partner is resident in the State, be construed as a reference to the agent, manager, or factor of the firm resident in the State;

“relevant period” means in relation to a partnership trade a continuous period the whole or part of which is after the 5th day of April, 1965—

(a) beginning at a time when either the trade was not carried on immediately before it by two or more persons in partnership or none of the persons then carrying on the trade in partnership was one of the persons who immediately before it carried on the trade in partnership, and

(b) continuing so long as (but only so long as) there has not occurred a time when either the trade is not carried on immediately after it by two or more persons in partnership or none of the persons then carrying on the trade in partnership is one of the persons who immediately after it carry on the trade in partnership,

subject to the proviso that, in the case of any such period which, apart from this proviso, would have begun before the 6th day of April, 1965, “the relevant period” shall be taken as having begun at the time, or at the last of two or more times, at which, a change having occurred in the partnership of persons then engaged in carrying on the trade, the persons so engaged immediately after the time fell to be treated under the Income Tax Acts as having set up or commenced the trade at that time.

(2) In relation to a case in which a partnership trade is from time to time during a relevant period carried on by two or more different partnerships of persons, any reference in this Part to the partnership shall, unless the context otherwise requires, be construed as including a reference to any partnership of persons by whom the trade has been carried on since the beginning of the relevant period and any reference to a partner shall be construed correspondingly.

(3) The provisions of this Part shall, with any necessary modifications, apply in relation to professions and vocations, as they apply in relation to trades.