Partnership income is apportioned according to the shares current in the tax year. Salaries paid to partners and interest on capital contributed by partners are deducted from the partnership profits before the shares of each partner are ascertained (see ¶62115). Where a partnership involves a company, slightly different rules apply (see ¶62130).
Other income of a trading partnership is computed as if it is a notional business and allocated according to sharing ratios in the period covered by the computation. If the other income is untaxed, then, for basis periods purposes, all sources of untaxed income are pooled and treated as arising from a separate notional business.