Commentary

B2.802 The types of discontinuance

Business tax
Business tax | Commentary

B2.802 The types of discontinuance

Business tax | Commentary

B2.802 The types of discontinuance

On the cessation of a trade, or for income tax purposes, a profession or vocation, the trade may be:

  1.  

    •     sold as a going concern, with all assets and liabilities being taken over by the successor

  2.  

    •     sold as a going concern, with the vendor retaining some of the assets (including book debts) and/or agreeing to discharge some of the liabilities, or

  3.  

    •     completely discontinued, the assets being realised as far as possible and the liabilities discharged

There are special rules governing the valuation of the following items for tax purposes:

  1.  

    •     trading stock (including, for

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