Part 12 Supplementary provisions
Chapter 4 Partnerships, successions and transfers
558 Effect of partnership changes
1
This section applies if—
a
a relevant 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 relevant activity, and
i
involve all of the persons carrying on the relevant activity before the change permanently ceasing to carry it on, or
ii
result in the relevant 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 relevant activity, and
“ predecessors ”, in relation to the present partners, means their predecessors in carrying on the relevant activity.
3
Any allowance or charge is to be made to or on the present partners.
4
The amount of any allowance or charge arising under subsection (3) is to be calculated as if—
a
the present partners had at all times been carrying on the relevant activity, and
b
everything done to or by their predecessors in carrying on the relevant activity had been done to or by the present partners.
5
In this section “ relevant activity ” means a trade, property business, profession or vocation.