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Paragraph 35 Variation provisions specific to a contract with two or more individuals practising in partnership changing to a contract with an individual

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

Subject to sub-paragraph (4), where a contractor consists of two or more individuals practising in partnership, in the event that the partnership is terminated or dissolved, the contract shall only continue with one of the former partners if that partner is nominated in accordance with sub-paragraph (3) and provided that the requirements in sub-paragraphs (2) and (3) are met.

(2)

A contractor shall notify the PCT at least 28 days in advance of the date on which the contractor proposes to change its status from that of a partnership to that of an individual.

(3)

A notice under sub-paragraph (2) shall—

(a)

specify the date on which the contractor proposes to change its status from that of a partnership to that of an individual;

(b)

specify the name of the individual with whom the contract will continue, which must be one of the partners; and

(c)

be signed by all of the persons who are practising in partnership.

(4)

If a partnership is terminated or dissolved because, in a partnership consisting of two individuals practising in partnership, one of the partners has died, sub-paragraphs (1) to (3) shall not apply and—

(a)

the contract shall continue with the individual who has not died; and

(b)

that individual shall in any event notify the PCT as soon as is reasonably practicable of that partner’s death.

(5)

When the PCT receives a notice pursuant to sub-paragraph (2) or (4)(b), it shall acknowledge in writing receipt of the notice, and in relation to a notice served pursuant to sub-paragraph (2), the PCT shall do so before the date specified pursuant to sub-paragraph (3)(a).

(6)

Where a contractor gives notice to the PCT pursuant to sub-paragraph (2) or (4)(b), the PCT may vary the contract, but only to the extent that it is satisfied is necessary to reflect the change in status of the contractor from a partnership to an individual.

(7)

If the PCT varies the contract pursuant to sub-paragraph (6), it shall notify the contractor of the wording of the proposed variation and the date upon which that variation is to take effect.