PSI5.3.10 - Contributions by Employers: Special Contributions - Cessation of Trading - Other Employers

(This archived guidance relates to HMRC discretionary practice before the 6th April 2006. For current guidance on Registered Pension Schemes see the Registered Pension Schemes Manual)

Where there is a change in the composition of a partnership, the partners can elect under section 113(2) ICTA 1988 to be assessed to income tax on a continuing basis. In such a case the normal cessation provisions do not apply and you can accept the new employer as standing in the place of the old. The spread can then be allowed to continue normally. But if the continuance of the spread is disputed, and it is contended that the special contribution should be re-allocated wholly to accounting periods prior to the change, refer the case to the Assistant Controller.

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