Section 212C When there is qualifying change in relation to CF1

United Kingdom

(1)

There is a qualifying change in relation to C on the relevant day if one or more of conditions A to D is met.

(2)

Condition A is that—

(a)

the principal company or companies of C at the beginning of the relevant day is not, or are not, the same as at the end of that day, or

(b)

there is no principal company of C at the beginning of the relevant day but there is one, or are more than one, at the end of the relevant day.

(3)

Condition B is that—

(a)

any principal company of C is a consortium principal company (“CPC”), and

(b)

CPC's ownership proportion at the end of the relevant day is more than at the beginning of the relevant day.

(4)

Condition C is that F2the relevant activity is a trade (within the meaning of this Part) and on the relevant day—

(a)

C ceases to carry on the whole or part of the relevant F3activity, and

(b)

it begins to be carried on in partnership by two or more companies,

in circumstances in which Chapter 1 of Part 22 of CTA 2010 (transfers of trade without change of ownership) applies in relation to the transfer of the relevant activity.

(5)

Condition D is that—

(a)

the relevant F4activity is, at the beginning of the relevant day, carried on by C in partnership, and

(b)

C's relevant percentage share in the relevant activity at the end of the relevant day is less than at the beginning of the relevant day (or is nil).

Annotations

Textual amendments

F1: Pt. 2 Ch. 16A inserted (8.4.2010) (with effect in accordance with Sch. 4 para. 5, 6 to the amending Act) by Finance Act 2010 (c. 13), Sch. 4 para. 2
F2: Words in s. 212C(4) inserted (with effect in accordance with Sch. 26 para. 13 of the amending Act) by Finance Act 2013 (c. 29), Sch. 26 para. 6(2)(a)
F3: Word in s. 212C(4) substituted (with effect in accordance with Sch. 26 para. 13 of the amending Act) by Finance Act 2013 (c. 29), Sch. 26 para. 6(2)(b)
F4: Word in s. 212C(5) substituted (with effect in accordance with Sch. 26 para. 13 of the amending Act) by Finance Act 2013 (c. 29), Sch. 26 para. 6(3)

Notes on Part 2

Modifications

C1: Pt. 2 modified (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), s. 458(1), Sch. 10 para. 12 (with Sch. 10 para. 17(1)); S.I. 2003/120, art. 2, Sch. (with arts. 3 4) (as amended (20.2.2003) by S.I. 2003/333, art. 14)
C2: Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 10, 22 (with s. 38(2) ); S.I. 2004/2575 , art. 2(1) , Sch. 1
C3: Pt. 2 modified (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 9(2), 21(2) (with s. 38(2)); S.I. 2004/2575, art. 2(1) , Sch. 1
C4: Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 4 para. 4 ; S.I. 2004/2575 , art. 2(1) , Sch. 1
C5: Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 19
C6: Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 35
C7: Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 paras. 36, 37
C8: Pt. 2 modified (21.7.2009) by Finance Act 2009 (c. 10), s. 24
C9: Pt. 2 modified (17.7.2013) by Finance Act 2013 (c. 29), s. 73(7)-(11) (with s. 73(6))
C10: Pt. 2 modified (10.6.2021) by Finance Act 2021 (c. 26), s. 9(1)(a)

Notes on Chapter 16A

Textual amendments

F2: Pt. 2 Ch. 16A heading substituted (with effect in accordance with Sch. 26 para. 13 of the amending Act) by Finance Act 2013 (c. 29), Sch. 26 para. 4