Case II - deductions
18/10/1995
Query
Can a partnership claim a deduction for rent paid in respect of a premises which is owned by the individual partners in the firm.
Decision
No. It appears that the lease involved between the partnership and the partners has no legal standing. The case of Rye-v-Rye 1962 A.C. 496 is relevant. The issue is currently the subject of an appeal, which has not yet been finalised. Hoeever, the foregoing continues to repersent Revenue thinking in the issue. It is considered that the fact that partners may share partnership profits on a basis which differs from the basis on which that rent on the premises is paid to the various partners does not affect the issue.
Income Tax
Section 81, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:IT953545