Corporation Tax Act 2010 (c. 4)

Part 14 U.K. Change in company ownership

Chapter 3 U.K. Company with investment business: restrictions on relief: general provision

Meaning of “significant increase in the amount of a company's capital” U.K.

690 Amount B U.K.

(1) In section 688, amount B is the highest 60 day minimum amount for the post-change period.

(2) The highest 60 day minimum amount for the post-change period is found as follows.

• Step 1 Find the daily amounts of the company's capital over the post-change period.

• Step 2 Take the highest of the daily amounts.

• Step 3 Find out whether there was in the post-change period a period of at least 60 days in which there was no daily amount lower than the amount taken.

• Step 4 If there was, the amount taken is the highest 60 day minimum amount for the post-change period. If there was not, take the next highest of the daily amounts and repeat step 3; and so on, until the highest 60 day minimum amount for the post-change period is found.

(3) In this section “the post-change period” means the period of 3 years beginning with the change in ownership.