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—

  1. a

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

  2. 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—

  1. a

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

  2. b

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

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

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).

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—

  1. a

     a company of which either of them has control, or

  2. b

     a company of which both have control.

• Rule 4

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

  1. a

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

  2. b

     a company of which both have control.

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