Section 676AC — Corporation Tax Act 2010: “Major change in the business” of a company

“Major change in the business” of a company 676AC 1 In this Chapter references to a “major change in the business” of a company include—

a a major change in the nature or conduct of any trade or business carried on by the company, b a major change in the scale of any trade or business carried on by the company, and c beginning or ceasing to carry on a particular trade or business.

2 In subsection (1) the reference to a major change in the “nature or conduct” of a trade or business includes—

a a major change in the type of property dealt in, or services or facilities provided in, the trade or business concerned, b a major change in customers, outlets or markets of the trade or business concerned, c a major change in the nature of the investments held by the company for the purposes of an investment business.

3 The definitions in subsections (1) and (2) apply even if the change is the result of a gradual process which began before the period of 5 years mentioned in section 676AA(4)(a) or (as the case may be) the period of 8 years mentioned in section 676AA(4)(b).

4 Where the condition in subsection (5) is met in the case of any two companies, the transfer of a trade or business, or any property, from one of them to the other is to be disregarded in determining for the purposes of section 676AA(3) whether or not there is a major change in the business of either of those companies.

5 The condition is that the companies are related to one another both—

a immediately before the change in ownership, and b at the time of the transfer mentioned in subsection (4).