Income Tax (Trading and Other Income) Act 2005 section 258

Changes in trustees and personal representatives

Section 258 deals with the income tax treatment when there is a change in the trustees of a trust or the personal representatives of a deceased person, at a time when they are carrying on a trade, profession or vocation.

• The section applies whenever trustees of a trust or personal representatives of a deceased person change while carrying on a trade, profession or vocation.
• A change in trustees or personal representatives does not, for income tax purposes, count as the outgoing trustees or personal representatives permanently ceasing to carry on the trade, profession or vocation.
• Equally, the incoming trustees or personal representatives are not treated as starting a new trade, profession or vocation — the existing activity is regarded as continuing without interruption.
• A similar rule applies to property income under section 361 of the same Act.