SE02501 - Directors' fees received by partnerships and companies

Extra Statutory Concession A37

Under ESC A37 certain fees may be included within Schedule D Case II assessments on professional partnerships instead of being taxed under Schedule E (see SE02500). Where such a request is received, the application should be dealt with by the Inspector responsible for examining the partnership accounts.

Where the conditions of paragraph 1 of the concession are satisfied, the Inspector should instruct the Schedule E District to issue an 'NT' coding for the following Income Tax year. The current year's coding should not be amended. The director's fees paid in full as a result of this 'NT' coding will be included in the relevant Schedule D Case II assessment. On receipt of instructions from the Schedule D District, the coding record for the following year should be noted for issue of an 'NT' coding at the appropriate time.

As regards the action needed where paragraphs 2 and 3 of the concession apply see SE67000 etc.