Modifications etc. (not altering text)
C1 S. 45H(2) modified (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 7
Modifications etc. (not altering text)
C2Pt. 2 modified (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), s. 458(1), Sch. 10 para. 12 (with Sch. 10 para. 17(1)); S.I. 2003/120, art. 2, Sch. (with arts. 3 4) (as amended (20.2.2003) by S.I. 2003/333, art. 14)
C3 Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 10, 22 (with s. 38(2) ); S.I. 2004/2575 , art. 2(1) , Sch. 1
C4 Pt. 2 modified (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 9(2), 21(2) (with s. 38(2)); S.I. 2004/2575, art. 2(1) , Sch. 1
C5 Pt. 2 modified (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 para. 21(2) (with s. 38(2) ); S.I. 2004/2575 , art. 2(1) , Sch. 1
C6 Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 para. 10 (with s. 38(2) ); S.I. 2004/2575 , art. 2(1) , Sch. 1
C7 Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 4 para. 4 ; S.I. 2004/2575 , art. 2(1) , Sch. 1
(1)This section applies if—
(a)a qualifying activity has been set up and is at any time carried on in partnership,
(b)there has been a change in the persons engaged in carrying on the qualifying activity, and
[F1(c)the following condition is met.]
[F2(1A)The condition is that—
(a)the change does not involve all of the partners permanently ceasing to carry on the qualifying activity, or
(b) the change does not result in the qualifying activity being treated under section 18 or 362 of ITTOIA 2005 as permanently ceasing to be carried on by a company or treated as discontinued under section 337(1) of ICTA (companies beginning or ceasing to carry on trade etc. ). ]
(2)In this section—
“the present partners” means the person or persons for the time being carrying on the qualifying activity,
“the partners at the time of the event” means the person or persons carrying on the qualifying activity at the time of the event in question,
“predecessors”—
in relation to the present partners, means their predecessors in carrying on the qualifying activity, and
in relation to the partners at the time of the event, means their predecessors in carrying on the qualifying activity, and
“qualifying activity”—
does not include an employment or office, but
includes any other activity listed in section 15(1) even if any profits or gains from it are not chargeable to tax.
(3)Any first-year allowance or writing-down allowance under this Part is to be made to the present partners.
(4)The amount of any allowance arising under subsection (3) is to be calculated as if—
(a)the present partners had at all times been carrying on the qualifying activity, and
(b)everything done to or by their predecessors in carrying on the qualifying activity had been done to or by the present partners.
(5)If any event occurs which gives rise or may give rise to a balancing allowance or a balancing charge under this Part, the allowance or charge is to be made to or on the partners at the time of the event.
(6)The amount of any allowance or charge arising under subsection (5) is to be calculated as if—
(a)the partners at the time of the event had at all times been carrying on the qualifying activity, and
(b)everything done to or by their predecessors in carrying on the qualifying activity had been done to or by the partners at the time of the event.
Textual Amendments
F1S. 263(1)(c) substituted(with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 549(2) (with Sch. 2)
F2S. 263(1A) inserted (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 549(3) (with Sch. 2)