Part 14U.K.Change in company ownership

Modifications etc. (not altering text)

C1Pt. 14 applied (1.4.2022 in relation to accounting periods beginning on or after that date) by Finance Act 2022 (c. 3), s. 51(1), Sch. 7 para. 20

C2Pt. 14 applied (with modifications) (14.7.2022) by Energy (Oil and Gas) Profits Levy Act 2022 (c. 40), Sch. 1 para. 18 (with ss. 15(1), 16(1), 17)

Chapter 2U.K.Disallowance of trading losses

673Introduction to ChapterU.K.

(1)This Chapter applies if—

(a)there is a change in the ownership of a company (“the company”), and

(b)condition A or B is met.

(2)Condition A is that within any period [F1beginning no more than 3 years before the change in ownership occurs which is a period of 5 years in which that change] occurs there is a major change in the nature or conduct of a trade carried on by the company.

(3)Condition B is that the change in ownership occurs at any time after the scale of the activities in a trade carried on by the company has become small or negligible and before any significant revival of the trade.

(4)In this section “major change in the nature or conduct of a trade” includes—

(a)a major change in the type of property dealt in, or services or facilities provided in, the trade, or

(b)a major change in customers, outlets or markets of the trade.

This Chapter applies even if the change is the result of a gradual process which began before the period of [F25] years mentioned in subsection (2).

(5)In this Chapter—

Textual Amendments

F1Words in s. 673(2) substituted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 72(2) (with Sch. 4 para. 72(4))

F2Word in s. 673(4) substituted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 72(3) (with Sch. 4 para. 72(4))