255Transfer of interest in premisesU.K.
(1)This section applies if, during the deduction period, the whole of the person's interest in the premises or in any part of them is transferred, whether by operation of law or otherwise.
(2)For the tax year in which the transfer takes place—
(a)the transferor and the transferee are entitled to a part of any deduction under section 254, and
(b)the amount of the deduction is determined by what is just and reasonable.
(3)For subsequent tax years in the deduction period, the entitlement to any deduction under section 254 depends on whether the interest transferred is in the whole of the premises or in part of them.
(4)If the interest transferred is in the whole of the premises, the transferee (but not the transferor) is entitled to any deduction under section 254.
(5)If the interest transferred is in part of the premises—
(a)the transferor and the transferee are entitled to a part of any deduction under section 254, and
(b)the amount of the deduction is determined by reference to what is properly referable to the part of the premises.
(6)This section is supplemented by sections 256 (ending of lease of premises) and 257 (transfer involving person within the charge to income tax).