Part 14Change in company ownership

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

Notional split of accounting period in which change in ownership occurs

678Notional split of accounting period in which change in ownership occurs

(1)

This section applies for the purposes of this Chapter.

(2)

The accounting period in which the change in ownership occurs (“the actual accounting period”) is treated as two separate accounting periods (“notional accounting periods”), the first ending with the change and the second consisting of the remainder of the period.

(3)

The amounts for the actual accounting period in column 1 of the table in section 685(2) are apportioned to the two notional accounting periods in accordance with section 685.

(4)

In this Chapter “the actual accounting period” and “notional accounting periods” have the same meaning as in this section.