BIM70670 - Business changes: succession and changes in ownership: death

If, on the death of a husband, wife or civil partner, a business passes from the deceased to the surviving spouse, the cessation and commencement provisions still apply. ESC/A7, which allowed the surviving spouse or civil partner to opt for the business to be taxed as though there had been no cessation, was withdrawn as part of the move to the current year basis of assessment.

The withdrawal was effective:

• from 6 April 1995, for businesses which commenced on or after 6 April 1994, and
• from 6 April 1999, for businesses already in existence at 5 April 1994.

A copy of the guidance relating to ESC/A7 can be obtained from CT&VAT (Technical).