Taxes Consolidation Act 1997 section 69

Changes of proprietorship

Section 69 deals with the tax treatment of changes in ownership of a trade or profession, treating such changes as a cessation and commencement for income tax purposes.

• When a sole trader transfers a trade or profession to another individual or to a partnership (even one including the original owner), the original owner is treated as having permanently discontinued the trade at the date of transfer.
• The new owner (or successor) is treated as having set up or commenced a brand new trade or profession from the date they take over, triggering the commencement rules under section 66.
• The cessation rules under section 67 apply to the outgoing owner, meaning the closing year rules and any related adjustments take effect.
• If the outgoing owner has died, any income tax arising under this section is assessed on the executors or administrators and is payable out of the deceased person's estate.