Section 559 Effect of successions
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(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 condition in subsection (1A) or (1B) (whichever is appropriate) is met.]1
Amendments
1 Para (b) substituted by Corporation Tax Act 2009 section 1322 and Schedule 1 para 519(2) for 2009-10 and later tax years (for income tax and capital gains tax purposes), and for accounting periods ending on or after 1 April 2009 (for corporation tax purposes).
(1A) For income tax purposes, the condition is that no person carrying on the relevant activity immediately before the succession continues to carry it on after the succession.
Amendments
Subs (1A) inserted by Corporation Tax Act 2009 section 1322 and Schedule 1 para 519(3) for 2009-10 and later tax years (for income tax and capital gains tax purposes), and for accounting periods ending on or after 1 April 2009 (for corporation tax purposes).
(1B) For corporation tax purposes, the condition is that no company carrying on the relevant activity in partnership immediately before the succession continues to carry it on in partnership after the succession.
Amendments
Subs (1B) added by Corporation Tax Act 2009 section 1322 and Schedule 1 para 519(3) for 2009-10 and later tax years (for income tax and capital gains tax purposes), and for accounting periods ending on or after 1 April 2009 (for corporation tax purposes).
(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.
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