Finance Act, 1998
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Amendment of section 1013 (limited partnerships) of Principal Act. |
50.—(1) Section 1013 of the Principal Act is hereby amended— | |
(a) in subsection (1)— | ||
(i) by the insertion before the definition of “the aggregate amount” of the following definition— | ||
“‘active partner’, in relation to a partnership trade, means a partner who works for the greater part of his or her time on the day-to-day management or conduct of the partnership trade;”, | ||
and | ||
(ii) in the definition of “limited partner”— | ||
(I) in paragraph (b), by the substitution of “reimbursed by some other person,” for “reimbursed by some other person, or”, | ||
(II) in paragraph (c), by the substitution of “incurred for the purposes of the trade, or” for “incurred for the purposes of the trade;”, | ||
and | ||
(III) by the insertion after paragraph (c) of the following paragraph: | ||
“(d) a person who carries on the trade as a general partner in a partnership otherwise than as an active partner where the activities of the trade include the activity of— | ||
(i) producing, distributing, or the holding of or of an interest in, films or video tapes, or | ||
(ii) exploring for, or exploiting, oil or gas resources;”, | ||
(b) in subsection (2)(a)— | ||
(i) in subparagraph (I), by the substitution of “gains arising from the trade,” for “gains arising from the trade, or”, | ||
(ii) in subparagraph (II), by the substitution of “profits or gains arising from the trade, or” for “profits or gains arising from the trade”, and | ||
(iii) by the insertion after subparagraph (II) of the following subparagraph: | ||
“(III) where the individual is a limited partner in relation to a trade by virtue of paragraph (d) of the definition of ‘limited partner’ and the relevant year of assessment is the year of assessment 1997-98 or any subsequent year of assessment, subject to subsection (2A), only against income consisting of profits or gains arising from the trade,”, | ||
and | ||
(c) by the insertion after subsection (2) of the following subsection: | ||
“(2A) Subparagraph (III) of subsection (2) (a) shall not apply to— | ||
(a) interest paid on or before the 27th day of February, 1998, | ||
(b) an allowance to be made in respect of expenditure incurred on or before the 27th day of February, 1998, or | ||
(c) a loss sustained in the year of assessment 1997-98 which would have been the loss sustained in that year if— | ||
(i) that year of assessment had ended on the 27th day of February, 1998, and | ||
(ii) the loss were determined only by reference to accounts made up in relation to the trade for the period commencing on the 6th day of April, 1997, or if later, the date the trade was set up and commenced, and ending on the 27th day of February, 1998, and not by reference to accounts made up for any other period.”. | ||
(2) This section shall apply as on and from the 28th day of February, 1998. |