Commentary on Sections Glossary Overview Section 559: Effect of successions
1941.This section is based on section 152(1) and (2) of CAA 1990. If an asset is transferred on succession, without a sale of the asset and the succession is following a deemed discontinuance, then the transfer is treated as a sale at market value.
1942.It does not apply to plant and machinery but section 265 provides a similar rule. See paragraph 911 above.
1943.If the succession is between connected persons then an election under section 569 may be available to substitute a lower figure. See paragraph 1973 below.
1944.Subsection (5) contains a change because of its application to property businesses. See Change 62 in Annex 1.