Section 232A | Partnerships ^F1

(1)A partnership is to be regarded for the purposes of this Part as continuing to be the same partnership regardless of a change in membership, provided that a person who was a member before the change remains a member after the change.^F1

(2)Where—^F1

(a)ownership interests in a partnership are transferred to more than one individual or entity, and^F1

(b)the result is a partnership of which none of the original partners are members,^F1

that new partnership is to be treated as if it were the same partnership as the old partnership.

(3)Where a partnership is otherwise dissolved in an accounting period—^F1

(a)the partnership is to be treated as a continuing entity for the purpose of dealing with its rights and obligations under this Part in respect of that accounting period and previous accounting periods, and^F1

(b)for the purposes of Schedule 14 (administration) each person who was a partner in that accounting period (before the partnership’s dissolution) is to be treated as a partner of the continuing entity.^F1

(4)The reference in subsection (2) to a transfer of ownership interests includes any series of transactions having the effect of a transfer (including by way of the cancellation of interests and the issue of corresponding interests).^F1