643(1)Amend section 862 (sale of patent rights: effect of later cessation of trade) as follows.U.K.
(2)For subsections (1) and (2) substitute—
“(1)This section applies if—
(a)a person (“the trader”) sells the whole or part of any patent rights in carrying on a trade,
(b)by virtue of section 861 amounts are chargeable to income tax under section 587 as profits of one or more persons for the time being carrying on the trade in partnership,
(c)a partner permanently ceases to carry on the trade after that, and
(d)no person who carried on the trade immediately before the cessation continues to carry on the trade immediately after the cessation.
(2)Any amounts mentioned in subsection (1)(b) which would have been chargeable in any tax year later than that in which the cessation occurred are charged in the tax year in which the cessation occurred.”
(3)Omit subsections (3) and (7).