Paragraph 7

(1)

Paragraph 8 (change of a company's nature) is amended as follows.

(2)

In sub-paragraph (1)—

(a)

after “trade” (in each place) insert “ or business ”,

(b)

in paragraph (a) for “carried on by that company” substitute “ which was carried on by that company immediately before it became a member of that group ”, and

(c)

for “paragraph 7(1)(c) and (2)(c)” substitute “ paragraph 7(1A) ”.

(3)

For sub-paragraph (2) substitute—

“(2)
In sub-paragraph (1) “a major change in the nature or conduct of a trade or business” includes—
(a)
a major change in the type of property dealt in, or services or facilities provided, in the trade or business,
(b)
a major change in customers, markets or outlets of the trade or business, or
(c)
in the case of a company with investment business (within the meaning of section 1218 of CTA 2009), a major change in the nature of the investments held;
and this paragraph applies even if the change is the result of a gradual process which began outside the period of three years mentioned in sub-paragraph (1)(a).”