Finance Act 2014

Division of partnership business

10 (1) This paragraph applies if—

(a) a person (“a departing partner”) who has been carrying on a business in partnership ceases to carry on the business in partnership,

(b) a conduct notice or a monitoring notice had effect in relation to the partnership immediately before the departing partner ceased to carry on the business in partnership, and

(c) the departing partner is continuing to carry on part (but not the whole) of the business (“the transferred part”).

(2) The notice mentioned in sub-paragraph (1)(b) is referred to in this paragraph as “the original notice”.

(3) An authorised officer may give the departing partner—

(a) a conduct notice (if the original notice is a conduct notice);

(b) a monitoring notice (if the original notice is a monitoring notice).

(4) If the departing partner is itself carrying on the transferred part of the business in partnership, the authorised officer may give that partnership (“the new partnership”)—

(a) a conduct notice (if the original notice is a conduct notice);

(b) a monitoring notice (if the original notice is a monitoring notice).

(5) A notice given under sub-paragraph (4) ceases to have effect if the departing partner ceases to be a member of the new partnership.

(6) A notice under sub-paragraph (3)(a) or (4)(a) may not be given after the termination date of the original notice (under section 241(2)(a) or (b)).

(7) It does not matter whether one, some or all of the persons who were carrying on the business in partnership are departing partners by virtue of sub-paragraph (1).