Taxes Consolidation Act 1997 section 760

Capital sums: effect of death, winding up and partnership changes

Section 760 deals with the acceleration of outstanding tax charges under section 757 (spreading of capital sums from patent rights sales) when the person chargeable dies, a company is wound up, or a partnership ceases to trade.

• Where a person chargeable under section 757 dies or a company begins to be wound up, all outstanding future annual charges are accelerated into the year of death or commencement of winding up.
• Personal representatives of a deceased individual may elect, within 21 days, to have the accelerated tax recalculated by spreading the outstanding balance equally over the years from receipt of the capital sum to the year of death.
• Where a partnership ceases to trade, the accelerated charge is apportioned among the partners according to their profit-sharing ratios, and each partner (or their personal representatives) has the same right to elect for the spreading recalculation.
• References in the section to tax paid or payable by a person include tax paid or payable by a jointly assessed spouse or civil partner.