Income Tax Act 2007 section 69

Whether trade is the same trade

Section 69 sets out rules for determining whether a trade is the same trade or a new trade, for the purposes of the restriction on loss relief for farming and market gardening.

• Where all persons carrying on a trade permanently cease to do so and different persons take over, the old trade is treated as ending and a new trade as beginning on the date of the change.
• A husband and wife, or civil partners, are treated as the same person, so a transfer between them does not create a new trade.
• A spouse or civil partner is also treated as the same person as any company that either or both of them control.
• The meaning of "control" follows the close company rules in sections 450 and 451 of the Corporation Tax Act 2010.