BIM73180 - Farmers' averaging: partnerships: the old rules

Claims for farmers' averaging in respect of partnerships which commenced trading before 6 April 1994 where the claim is for 1995-96 and 1996- 97 or an earlier pair of years are governed by ICTA88/S96 (6) as originally enacted.

The averaging is on the profits of the farm as an entity (except for profits liable to CT - see below) and not on the shares of individual partners. Relief is not available where it affects any year in which there is a partnership change and continuation is not claimed.

Sleeping partners, trustees, executors or other non-corporate persons are included for averaging purposes but corporate partners must be excluded (see BIM73110). Where one or more of the partners is a company, the aggregate shares of partnership profit attributed to non-corporate partners should be calculated as in ICTA88/S111 ( BIM72280) for each relevant year of assessment and these amounts adjusted in accordance with Section 96.