ESCA37 allows directors’ fees to be included in the
computation of the profits of professional partnerships assessable
under Schedule D Case II. There is a similar concession relating to
fees received by a company with a right to appoint a director to
the board of another company. Guidance on ESCA37 is at EIM02500 and
EIM02501.
A request to apply ESCA37 should be dealt with by the person
responsible for examining the partnership’s return and
accounts.
