8(1)This paragraph applies where, in the case of any income derived by any person from the carrying on by him of a trade or profession in partnership with other persons—
(a)that person (“the retiring partner”) ceases to carry on the trade or profession at any time in the transitional overlap period; and
(b)if he had not so ceased, paragraph 7(2) above would have applied in relation to him.
(2)The retiring partner shall for the year 1996-97 be chargeable to income tax under Case IV or V of Schedule D on 1.25 times the aggregate of the amounts which would have fallen within paragraph 7(1)(b) above.
(3)In this paragraph “the transitional overlap period” has the same meaning as in paragraph 7 above.