Part V Transfer of business assets

Chapter II Gifts of business assets

F1169ACessation of trade by limited liability partnership

(1)

This section applies where section 59A(1) ceases to apply to a limited liability partnership.

(2)

A member of the partnership who immediately before the time at which section 59A(1) ceases to apply holds an asset, or an interest in an asset, acquired by him—

(a)

on a disposal to members of a partnership, and

(b)

for a consideration which is treated as reduced under section 165(4)(b) or 260(3)(b),

shall be treated as if a chargeable gain equal to the amount of the reduction accrued to him immediately before that time.