2(1)Section 212B (circumstances where Chapter 16A applies) is amended as follows.U.K.
(2)For subsection (1)(d) substitute—
“(d)the qualifying change meets one of the limiting conditions.”
(3)For subsection (4) substitute—
“(4)Sections 212LA and 212M set out the limiting conditions and specify when those conditions are met.”
3U.K.After section 212L insert—
(1)The qualifying change meets one of the limiting conditions if condition A, B, C or D is met.
(2)Condition A is that the amount of the relevant excess of allowances is £50 million or more.
(3)Condition B is that the amount of the relevant excess of allowances—
(a)is £2 million or more but less than £50 million, and
(b)is not insignificant as a proportion of the total amount or value of the benefits derived by any relevant person by virtue of the qualifying change or change arrangements.
(4)“Relevant person” means a person who, at the end of the relevant day, is—
(a)a principal company of C,
(b)a person carrying on the relevant activity in partnership, or
(c)a person who is connected to a person within paragraph (a) or (b) (within the meaning of section 1122 of CTA 2010).
(5)Condition C is that—
(a)the amount of the relevant excess of allowances is less than £2 million, and
(b)the qualifying change has an unallowable purpose.
See section 212M for the meaning of “unallowable purpose”.
(6)Condition D is that the main purpose, or one of the main purposes, of any arrangements is to procure that condition A or B or paragraph (a) of condition C is not met.
(7)In this section—
the amount of the relevant excess of allowances is the difference between RTWDV and BSV (see sections 212K and 212L);
“change arrangements” and “arrangements” have the same meaning as in section 212M.”
4U.K.In consequence of the amendments made by paragraphs 2 and 3, the heading to Chapter 16A becomes “ Restrictions on allowance buying ”.