Taxes Consolidation Act 1997 section 313

Effect, in certain cases, of succession to trade, etc

Section 313 deals with how capital allowances and balancing adjustments are handled when a person succeeds to a trade or profession, including successions involving partnerships and deceased traders.

• Where a successor takes over a discontinued trade, any property transferred without being sold is treated as sold to the successor at its open market value, triggering normal balancing adjustments for the predecessor and writing-down allowances for the successor.
• In a continuing partnership trade, capital allowances and charges are computed as if the trade had always been carried on by one and the same person, so changes in partnership composition are ignored for capital allowance purposes.
• The apportionment of allowances and charges among partners in a partnership is subject to the rules set out in section 1010.
• Where a successor inherits a trade under a will or intestacy, special rules for machinery or plant allow the successor to elect to be treated as having purchased the assets at the lower of their tax written-down value or market value.