# Corporation Tax Act 2010, Section 724: Disregard of change in company ownership


(1) A change in the ownership of a company (“the subsidiary company”) is disregarded for the purposes of Chapters 2 to 6 if —
(a) immediately before the change in ownership, the subsidiary company is a qualifying 75% subsidiary of another company (“the parent company”), and
(b) although there is a change in the direct ownership of the subsidiary company, the subsidiary company continues after the change to be a qualifying 75% subsidiary of the parent company.
(2) For the purposes of this section, the subsidiary company is a qualifying 75% subsidiary of the parent company if conditions A, B and C are met.
(3) Condition A is that the subsidiary company is a 75% subsidiary of the parent company.
(4) Condition B is that the parent company would be beneficially entitled to at least 75% of any profits available for distribution to equity holders of the subsidiary company.
(5) Condition C is that the parent company would be beneficially entitled to at least 75% of any assets of the subsidiary company available for distribution to its equity holders on a winding up.
(6) Chapter 6 of Part 5 (equity holders and profits or assets available for distribution) applies for the purposes of subsections (4) and (5) as it applies for the purposes of section 151(4)(a) and (b).

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Source: https://www.legislation.gov.uk/ukpga/2010/4/section/724 (the official version)
Page: https://openlegislation.uk/corporation-tax-act-2010/section-724
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.