Section 689 — Corporation Tax Act 2010: Amount A

Amount A 689 1 In section 688, amount A is the lower of—

a the amount of the company's capital immediately before the change in ownership, and b the highest 60 day minimum amount for the pre-change year.

2 The highest 60 day minimum amount for the pre-change year is found as follows. Step 1 Find the daily amounts of the company's capital over the pre-change year. Step 2 Take the highest of the daily amounts. Step 3 Find out whether there was in the pre-change year 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 pre-change year. 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 pre-change year is found.

3 In this section “ the pre-change year ” means the period of one year ending immediately before the change in ownership.