(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—
immediately before the change, the trade is carried on by persons who include a company, and
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—
immediately before the change, no company carries on the trade in partnership, and
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 company of which either of them has control, or
a company of which both have control.
Rule 4
An individual's civil partner is treated as the same person as—
a company of which either of the civil partners has control, or
a company of which both have control.
(5)In subsection (4) “control” has the same meaning as in section 450.