Section 689 Amount A

(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.

Notes on Part 14

C1: Pt. 14 applied (1.4.2022 in relation to accounting periods beginning on or after that date) by Finance Act 2022 (c. 3), s. 51(1), Sch. 7 para. 20
C2: Pt. 14 applied (with modifications) (14.7.2022) by Energy (Oil and Gas) Profits Levy Act 2022 (c. 40), Sch. 1 para. 18 (with ss. 15(1), 16(1), 17)