559 Effect of successionsU.K.
(1)This section applies if—
(a)a person (“the successor”) succeeds to a relevant activity which until that time was carried on by another person (“the predecessor”), and
[F1(b)the following condition is met.]
[F2(1A)The condition is that—
(a)all of the persons carrying on the relevant activity before the succession permanently cease to carry it on, or
(b) the relevant activity is 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)The property in question is to be treated as if—
(a)it had been sold to the successor when the succession takes place, and
(b)the net proceeds of the sale were the market value of the property.
(3)The property in question is any property which—
(a)immediately before the succession, was in use for the purposes of the discontinued relevant activity, and
(b)immediately after the succession, and without being sold, is in use for the purposes of the new relevant activity.
(4)No entitlement to an initial allowance arises under this section.
(5)In this section “relevant activity” means a trade, property business, profession or vocation.
Textual Amendments
F1S. 559(1)(b) 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. 572(2) (with Sch. 2)
F2S. 559(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. 572(3) (with Sch. 2)