Part 14 U.K. Change in company ownership

[F1 CHAPTER 5A U.K. Shell companies: restrictions on relief

Textual Amendments

F1 Pt. 14 Ch. 5A inserted (with effect in accordance with Sch. 13 para. 3 of the amending Act) by Finance Act 2013 (c. 29), Sch. 13 para. 1(3)

Introduction U.K.

705A Introduction to Chapter U.K.

(1) This Chapter applies where there is a change in the ownership of a shell company.

(2) In this Chapter—

• “the change in ownership” means the change in ownership mentioned in subsection (1);

• “the company” means the company mentioned in subsection (1);

• “shell company” means a company that—

  (a)

  is not carrying on a trade,

  (b)

  is not a company with investment business, and

  (c)

  is not carrying on a UK property business.

705B Notional split of accounting period in which change in ownership occurs U.K.

(1) This section applies for the purposes of this Chapter.

(2) The accounting period in which the change in ownership occurs (“the actual accounting period”) is treated as two separate accounting periods (“notional accounting periods”), the first ending with the change and the second consisting of the remainder of the period.

(3) The amounts for the actual accounting period in column 1 of the table in section 705F(2) are apportioned to the two notional accounting periods in accordance with section 705F.

(4) In this Chapter “the actual accounting period” and “notional accounting periods” have the same meaning as in this section.]