BIM72290 - Partnerships: Computation & assessment: Other Income: Partner’s Basis Period: Taxed Income

You compute and allocate taxed income in the same way as Case I and II Schedule D income (ICTA88/S111 (2) and ICTA88/S111 (3) -as applied by ICTA88/S111 (7)). But there are no special basis period rules for taxed income. Instead you apply an actual (6 April to 5 April) basis of assessment as if the income had arisen to the partner from a personal source rather than from the partnership.

This rule only applies to taxed income that is ‘other income’ (i.e. non Case I and II income). It does not apply to any form of Case I and II receipt that may have tax deducted at source. (For example, income which has suffered tax under the subcontractors deduction scheme (SC60 income)). You give credit for the tax credit associated with any such Case I and II receipt for the tax year in which it falls, rather than the year in which the corresponding receipt is assessed.