Part 14Change in company ownership

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

Meaning of “significant increase in the amount of a company's capital”

690Amount B

1

In section 688, amount B is the highest 60 day minimum amount for the post-change period.

2

The highest 60 day minimum amount for the post-change period is found as follows.

  • Step 1 Find the daily amounts of the company's capital over the post-change period.

  • Step 2 Take the highest of the daily amounts.

  • Step 3 Find out whether there was in the post-change period a period of at least 60 days in which there was no daily amount lower than the amount taken.

  • Step 4 If there was, the amount taken is the highest 60 day minimum amount for the post-change period. If there was not, take the next highest of the daily amounts and repeat step 3; and so on, until the highest 60 day minimum amount for the post-change period is found.

3

In this section “the post-change period” means the period of 3 years beginning with the change in ownership.