529A Partnerships

Summary

This section provides an administrative framework for relevant payments to be made for professional services provided by partnerships.

Detail

(1) Where a professional service is provided by a partnership, then the accountable person may make that payment (including payments for medical services under section 522) to the partnership.

(2) Where a relevant payment is made to a partnership, then for the purposes of section 520(2), 526 and 527:

• The relevant payment is deemed to have been made to each partner and
• The tax deducted is apportioned between the partners in the same ratio.

(3) Where a payment has been made to a partnership and the payment and the tax have been apportioned between the partners, the precedent partner shall give each partner a statement giving details of the payment, the tax, the apportionment etc. A copy of the F45 (issued under section 524(2)) relevant to the payment and tax should be enclosed with the statement.

These documents are used by the individual partners when claiming relief for PSWT suffered under sections 526 or 527.

(4) The statement from the precedent partner to the partners can be in writing or by electronic means.

Relevant Date: Finance Act 2019