Paragraph 641

(1)

Amend section 860 (adjustment income) as follows.

(2)

After subsection (1) insert—

“(1A)
A change in the persons carrying on a property business from one period of account to the next does not prevent Chapter 7 of Part 3 (adjustment income) applying in relation to the property business so long as a person carrying on the property business immediately before the change continues to carry on the property business immediately after the change.”

(3)

In subsection (3)—

(a)

after “trade” insert “ or property business ”, and

(b)

after “Chapter 17 of Part 2” insert “ , or Chapter 7 of Part 3, ”.

(4)

In subsection (6)—

(a)

in paragraph (a), at the end insert “ or Chapter 7 of Part 3 (as the case requires) ”, and

(b)

in paragraph (b) after “trade” insert “ or property business (as the case requires) ”.