BIM72325 - Partnerships: Computation & assessment: Changes in Membership

At a complete change in the ownership of a business you apply the deemed cessation rule in ICTA88/S113 (1).

But whenever there is a partial change of ownership, such that one or more persons carrying on the trade or profession before the change (whether alone or in partnership) continue to carry on the trade or profession after the change (whether alone or in partnership), you do not apply the deemed cessation rule in ICTA88/S113 (1). Instead you apply the deemed continuation in all such cases (ICTA88/S113 (2)).

The commencement and cessation rules of ICTA88/S111 (3) however apply to individual partners joining or leaving the partnership - see BIM72260.

A more detailed consideration of the effects of changes in the composition of a partnership is at BIM72400 onwards - mergers and demergers.