Specific computational provisions are required to deal with loan relationships where a partnership has one or more corporate partners. This is because income from debt is treated in different ways for individuals and companies and different types of company may get different treatment under the loan relationships rules.

The provisions apply where a trade, profession or business is carried on by persons in partnership where any of those persons is a company and a ‘money debt’ is owed by or to the firm (s. 380(1)).

A ‘money debt’ is a debt that may be settled by

the payment of money; or

transferring the rights to settlement of another money debt; or

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