After section 212L insert—

“Limiting conditions

212LALimiting conditions

(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.”