s455 tax - definition of 'partner'

Scottish partnerships

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Close company lends money to individual I. I has no direct connection with the company. However, he is in partnership (P1). The other partner in that partnership is itself a partnership (P2) one of the partners of which, P, is a participator in the company.  The other partner in P2 has no connection whatsover with either the company or any of the individuals (other than of course being a partner of P). The question is whether or not P and I are associated for s455 purposes, ie whether or not they are partners in P1.

P2 (and P1) are Scottish partnerships. I am aware that the changes to s455 rules remove any doubt that Scottish partnerships fall within the scope, at least as far as advances to such partnerships are concerned. But, as a matter of law, a Scottish partnership remains a separate legal entity. I have no doubt therefore that I and P2 are partners. The question is whether I and P are also to be treated as partners.

None of the specific exclusions apply  The Consumer Credit Act may or may not be a separate issue, but nothing to do with my question.

TIA

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By leeanthonyblackshaw
25th Feb 2017 11:21

There may be a couple of questions to ask, alongside the the s455 ones. Why has the loan to I been made? Has the lender considered the Consumer Credit Act?

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