{
  "url": "https://openlegislation.uk/corporation-tax-act-2010/section-712",
  "json_url": "https://openlegislation.uk/corporation-tax-act-2010/section-712.json",
  "legislation": "ukpga/2010/4",
  "legislation_title": "Corporation Tax Act 2010",
  "legislation_url": "https://openlegislation.uk/corporation-tax-act-2010",
  "path": "section/712",
  "kind": "section",
  "number": "712",
  "heading": "Meaning of “a major change in the nature or conduct of a trade or business”",
  "text": "(1) This section applies for the purposes of section 711(4).\n(2) “A major change in the nature or conduct of a trade or business” includes—\n(a) a major change in the type of property dealt in, or services or facilities provided, in the trade or business,\n(b) a major change in customers, outlets or markets of the trade or business,\n(c) a change by which the company ceases to be a trading company and becomes an investment company,\n(d) a change by which the company ceases to be an investment company and becomes a trading company, and\n(e) if the company is an investment company, a major change in the nature of the investments held by the company.\n(3) Any reference in subsection (2) to a change includes a change which is achieved gradually as a result of a series of transfers.\n(4) In this section “trading company” means a company whose business consists wholly or mainly in the carrying on of a trade or trades.\n(5) For the purposes of this section, a company is an investment company if—\n(a) its business consists wholly or mainly in the making of investments, and\n(b) the principal part of its income is derived from investments.\n(6) But a company is not an investment company if its business consists wholly or mainly in the holding of shares or securities of companies—\n(a) which are its 90% subsidiaries, and\n(b) which are trading companies.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2010/4/section/712",
    "retrieved_at": "2026-10-29T09:10:29.433154+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}