In the case of a partnership the basic amount of the income
is adjusted by apportionment to reflect the change in the partner
company’s interest in the partnership business.
The basic amount is therefore apportioned in line with the
fall in the company’s relevant percentage share on the day.
Example: income amount change in interest in
business
In this example the interest of A Ltd in the business has fallen
by 80%. 80% is the appropriate percentage of the basic amount.
If, for P, PM = 2,500 and TWDV - £1,500 then the basic
amount is PM - TWDV = 1000.
The appropriate percentage of the basic amount is 80%
therefore the income amount is 800.
