BIM61255 - Leasing: Avoidance: Assets other than land: notional discontinuance ignored

In considering what constitutes one trade, a notional discontinuance (ITTOIA05/S18, ICTA88/S113 or ICTA88/S337 (1)) is to be ignored.

Thus, if under the lease of an asset to Andrew the rent for the first three years exceeds the commercial rent and, after two years, Andrew transfers his trade and the lease to Brian, there will be a disallowance in computing Brian's profit. Brian will not, however, be entitled to any carry-forward under BIM61250 of Andrew's disallowances.