Income Tax (Trading and Other Income) Act 2005 section 79A

Additional payments: change in the persons carrying on the trade

Section 79A deals with what happens to the rules on additional payments (under section 79) when there is a change in the people carrying on a trade.

• This section applies the additional payments rules in section 79 where the persons carrying on the trade change
• If no person who carried on the trade before the change continues afterwards, the employer is treated as having permanently ceased the trade
• If at least one person continues to carry on the trade after the change, the trade is not treated as having permanently ceased
• The deemed permanent cessation triggers the consequences set out in section 79 regarding the tax treatment of additional payments