PART XVII TAX AVOIDANCE
CHAPTER VI MISCELLANEOUS
Change in ownership of company
F1C1C2768E Change in ownership of company with unused non-trading loss on intangible fixed assets
1
Where there is a change in the ownership of F2a company with investment business and either—
a
paragraph (a), (b) or (c) of section 768B(1) applies, or
b
section 768C applies,
the following provisions have effect to prevent relief being given under paragraph 35 of Schedule 29 to the Finance Act 2002 by setting a non-trading loss on intangible fixed assets incurred by the company before the change of ownership against profits arising after the change.
2
The accounting period in which the change of ownership occurs is treated for that purpose as two separate accounting periods, the first ending with the change and the second consisting of the remainder of the period.
3
The profits or losses of the period in which the change occurs are apportioned to those two periods—
a
where paragraph (a), (b) or (c) of section 768B(1) applies, in accordance with Parts 2 and 3 of Schedule 28A, or
b
where section 768C applies, in accordance with Parts 5 and 6 of that Schedule,
unless in any case the specified method of apportionment would work unjustly or unreasonably in which case such other method shall be used as appears just and reasonable.
4
Relief under paragraph 35 of Schedule 29 to the Finance Act 2002 against total profits of the same accounting period is available only in relation to each of those periods considered separately.
5
A loss made in any accounting period beginning before the change of ownership may not be set off under paragraph 35(3) of Schedule 29 to the Finance Act 2002 against—
a
in a case where paragraph (a), (b) or (c) of section 768B(1) applies, profits of an accounting period ending after the change of ownership;
b
in a case where section 768C applies, so much of those profits as represents the relevant gain within the meaning of that section.
6
Subsections (8) and (9) of section 768 (time limits for assessment; information powers) apply for the purposes of this section as they apply for the purposes of that section.
7
In this section F3“company with investment business” has the same meaning as in Part 4.