Corporation Tax Act 2010

Corporation Tax Act 2010

2010 CHAPTER 4

Introduction

Part 14: Change in company ownership

Chapter 3: Company with investment business: restrictions on relief: general provision

Section 677: Introduction to Chapter

2103. This section introduces the Chapter. It is based on sections 768B, 768D and 768E of ICTA. If, having read this section, the reader is satisfied that the conditions for this Chapter to apply are not met, the reader need read no further in this Chapter.

2104. Subsections (1) to (4) lay down the conditions for the Chapter to apply.

2105. Subsection (1) is based on, among other things, section 768D(1)(a)(i) of ICTA. Unlike section 768D(1) of ICTA, subsection (1) does not refer to a change in the ownership of a company carrying on a UK property business; it refers to a change in the ownership of a company with investment business. The reason is that, if section 768D(1)(a)(i) of ICTA applies, then:

• There is a change in the ownership of a company carrying on a UK property business (see the opening words of section 768D(1)); and

• The company whose ownership has changed is a company with investment business (see the opening words of section 768D(1)(a)).

2106. Accordingly, if section 768D(1)(a)(i) of ICTA applies, there is by implication a change in the ownership of a company with investment business. There is therefore no need for section 768D(1)of ICTA to pick up the opening words of section 768B of that Act.

2107. Subsection (5) defines, non-exhaustively, “major change in the nature or conduct of a business”.