69 Changes of proprietorship

Summary

Where a trade or profession undergoes a change of proprietorship, the change is treated as a permanent cessation of the trade or profession and the commencement of a new trade or profession.

Details

Cessation of trade

(1) A trade or profession is treated as permanently discontinued where one individual is succeeded by another individual or by a partnership (including a partnership in which the former individual is a partner). Accordingly, the provisions applicable to the cessation of a trade or profession set out in section 67 apply in such circumstances.

Succession to a trade or profession

(2) A successor is treated as having set up a new trade or profession where he/she succeeds to a trade or profession previously solely carried on by another individual or by a partnership (including a partnership in which the successor was a partner). Accordingly, the provisions applicable to the commencement of a trade or profession set out in section 66 apply in such circumstances.

Deceased persons

(3) Where a deceased person has a liability to tax due to the operation of this section, that liability is assessable and chargeable on his/her executors or administrators and is a debt due from and payable out of that person’s estate.

Relevant Date: Finance Act 2021