ICTA88/S113 (1) is modified in the way it applies to
‘partial’ changes in those carrying on a trade. A
‘partial’ change is one where at least one person is
engaged in carrying on the trade both before and after the change.
The most common examples are a change in membership of a
partnership and a sole trader taking on a partner.
For years where the Current Year basis of assessment applies
ICTA88/S113 (1) does not apply to partial changes in ownership,
because it is disapplied by ICTA88/S113 (2). So on a partial change
of ownership the cessation and commencement provisions are not
applied (unless exceptionally there is at the same time an actual
cessation of one trade and the commencement of a new one).
A copy of the guidance relating to pre-SA years can be
obtained from CT&VAT (Technical).
