BIM72255 - Partnerships: Computation & assessment: Profits: Partner’s Deemed Trade

For the purpose of computing their tax liability the share of Schedule D Case I/II profits allocated to a partner is treated as having been derived from a separate, ‘deemed trade’, which that partner carries on alone (ICTA88/S111 (4)(a)).

If the partnership business comprises two or more Case I/II sources, each partner will also have two or more ‘deemed trades’.