Part 12Supplementary provisions

Chapter 4Partnerships, successions and transfers

558Effect 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

c

the change is not treated as a permanent discontinuance of the relevant activity under section 113(1) or 337(1) of ICTA (change in persons carrying on a trade etc. and effect of company ceasing to 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.