Income Tax (Trading and Other Income) Act 2005 section 361

Changes in trustees and personal representatives

Section 361 deals with what happens for income tax purposes when there is a change in the trustees of a trust or the personal representatives of a deceased person, while they are running a property business.

• When trustees of a trust or personal representatives change while carrying on a property business, the business is treated as continuing without interruption for income tax purposes.
• A change in trustees or personal representatives does not trigger a permanent cessation of the property business by the outgoing individuals.
• The incoming trustees or personal representatives are not treated as starting a new property business — they simply continue the existing one.
• This rule applies whether the change is partial (some trustees replaced) or complete (all trustees replaced), and a similar rule exists for trading income under section 258 of the same Act.