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Corporation Tax Act 2010

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Changes over time for: Section 50

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Point in time view as at 14/03/2012.

Changes to legislation:

Corporation Tax Act 2010, Section 50 is up to date with all changes known to be in force on or before 27 February 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

50Cessation of tradesU.K.
This section has no associated Explanatory Notes

(1)For the purposes of section 48(3)(c) a trade is to be treated as ceased, and a new trade as started, in any of the following cases—

  • Case 1

    A company starts or ceases to be within the charge to corporation tax in respect of a trade.

  • Case 2

    There is a change in the persons carrying on a trade which involves all of the persons carrying it on before the change permanently ceasing to carry it on.

  • Case 3

    There is a change in the persons carrying on a trade and—

    (a)

    immediately before the change, the trade is carried on by persons who include a company, and

    (b)

    after the change, no company that carried on the trade in partnership immediately before the change continues to carry it on in partnership.

  • Case 4

    There is a change in the persons carrying on a trade and—

    (a)

    immediately before the change, no company carries on the trade in partnership, and

    (b)

    immediately after the change, the trade is carried on in partnership by persons who include a company.

(2)Subsection (1) is subject to subsections (3) and (4).

(3)A trade is not to be treated as ceased if the change in the persons carrying on the trade is a transfer to which Chapter 1 of Part 22 applies (transfers of trade without a change of ownership).

(4)In determining if there is a change in the persons carrying on a trade, subsection (1) is subject to the following rules—

  • Rule 1

    A husband and wife are treated as the same person.

  • Rule 2

    Individuals who are civil partners of each other are treated as the same person.

  • Rule 3

    A husband or wife is treated as the same person as—

    (a)

    a company of which either of them has control, or

    (b)

    a company of which both have control.

  • Rule 4

    An individual's civil partner is treated as the same person as—

    (a)

    a company of which either of the civil partners has control, or

    (b)

    a company of which both have control.

(5)In subsection (4) “control” has the same meaning as in section 450.

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