BIM72260 - Partnerships: Computation & assessment: Partner’s Deemed Trade: Commencement and Cessation

Where a partner joins or leaves a continuing business their ‘deemed trade’ is treated as having commenced when they first joined the partnership and is treated as having ceased when they leave the partnership (ICTA88/S111 (4)(b) and (e)).

But, if the partnership business was previously carried on by one of the partners on their own, you treat the ‘deemed trade’ for that partner as having commenced at the time the business was in fact set up and commenced (or is deemed to commence by ICTA88/S113 (1)).

Similarly, if one of the partners succeeds to the business and thereafter carries it on on their own, you treat the deemed trade for that partner as having ceased when the business is permanently discontinued (or is deemed to be discontinued by ICTA88/S113 (1)).