Section 269CG The “start-up period”F1

(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.

Annotations

Textual amendments

F1: Pt. 7A inserted (with effect in accordance with Sch. 2 para. 7-9 of the amending Act) by Finance Act 2015 (c. 11), Sch. 2 para. 1