Part 12

Supplementary provisions
Chapter 4

Partnerships, successions and transfers

Effect of successions
559
1
This section applies if—
a
a person (“the successor”) succeeds to a relevant activity which until that time was carried on by another person (“the predecessor”), and
b
the relevant activity is treated as discontinued under section 113(1) or 337(1) of ICTA (change in persons carrying on a trade etc. and effect of company ceasing to trade etc.).
2
The property in question is to be treated as if—
a
it had been sold to the successor when the succession takes place, and
b
the net proceeds of the sale were the market value of the property.
3
The property in question is any property which—
a
immediately before the succession, was in use for the purposes of the discontinued relevant activity, and
b
immediately after the succession, and without being sold, is in use for the purposes of the new relevant activity.
4
No entitlement to an initial allowance arises under this section.
5
In this section “relevant activity” means a trade, property business, profession or vocation.