Section 269CG — Corporation Tax Act 2010: The “start-up period”

The “start-up period” 269CG 1 In this Chapter the “ start-up period ”, in relation to a company (“company C”), means the period of 5 years beginning with the day on which company C first begins to carry on a relevant regulated activity (“the start-up day”). This is subject to the following provisions of this section.

2 If on the start-up day—

a company C is a member of a group, b there are one or more other members of the group that have carried on a relevant regulated activity while a member of the group, and c none of those members first began to carry on such an activity more than 5 years before the start-up day, company C's start-up period is the period beginning with the start-up day and ending with the relevant group period.

3 The “ relevant group period ”, in relation to a group, means the period of 5 years beginning with the earliest day on which any member of the group first began to carry on a relevant regulated activity.

4 If on the start-up day—

a company C is a member of a group, b there are one or more other members of the group that have carried on a relevant regulated activity while a member of the group, and c any of those members first began to carry on such an activity more than 5 years before the start-up day, company C does not have a start-up period.

5 This subsection applies if—

a on a day falling within company C's start-up period (“ the relevant day ”), company C becomes a member of a group, b one or more of the members of the group which on the relevant day carry on a relevant regulated activity first began to do so before the beginning of company C's start-up period, and c the relevant regulated activities carried on by company C do not form a significant proportion of the relevant regulated activities carried on immediately after the relevant day by the members of the group as a whole.

6 Where subsection (5) applies, company C's start-up period—

a in the case where any of the members of the group first began to carry on a relevant regulated activity more than 5 years before the relevant day, ends immediately before the relevant day;

b in any other case, ends with the relevant group period.

7 This subsection applies if—

a on a day falling within company C's start-up period (“ the relevant day ”), another company that carries on a relevant regulated activity (“the new member”) becomes a member of a group of which company C is a member, b the new member first began to carry on a relevant regulated activity before the beginning of company C's start-up period, and c the relevant regulated activities carried on by the new member form a significant proportion of the relevant regulated activities carried on immediately after the relevant day by the members of the group as a whole.

8 Where subsection (7) applies, company C's start-up period—

a in the case where the new member first began to carry on a relevant regulated activity more than 5 years before the relevant day, ends immediately before the relevant day;

b in any other case, ends with the relevant group period.

9 Any reference in this section to being, or becoming, a member of a group includes a reference to being, or becoming, a member of a partnership; and references to the “ relevant group period ” are to be read accordingly.

10 Section 269CL contains provision for determining when a company first begins to carry on a relevant regulated activity.