Paragraph 8 F1

United Kingdom

C1(1)

If—

(a)

within any period of three years, a company becomes a member of a group of companies and there is (either earlier or later in that period, or at the same time) a major change in the nature or conduct of a trade F2or business F3which was carried on by that company immediately before it became a member of that group, or

(b)

at any time after the scale of the activities in a trade or business carried on by a company has become small or negligible, and before any considerable revival of the trade or business, that company becomes a member of a group of companies,

the trade or business carried on before that change, or which has become small or negligible, shall be disregarded for the purposes of F4paragraph 7(1A) above in relation to any time before the company became a member of the group in question.

(F52)

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 F6section 1218B 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).

(3)

Where the operation of this paragraph depends on circumstances or events at a time after the company becomes a member of any group of companies (but not more than three years after), an assessment to give effect to this paragraph shall not be out of time if made within six years from that time or the latest such time.

Annotations

Textual amendments

F1: Sch. 7A inserted (27.7.1993 with effect as mentioned in s. 88(3) of the amending Act) by 1993 c. 34, c. 88(2), Sch. 8
F2: Words in Sch. 7A para. 8(1) inserted (with effect in accordance with Sch. 11 paras. 11, 12 of the amending Act) by Finance Act 2011 (c. 11), Sch. 11 para. 7(2)(a)
F3: Words in Sch. 7A para. 8(1) substituted (with effect in accordance with Sch. 11 paras. 11, 12 of the amending Act) by Finance Act 2011 (c. 11), Sch. 11 para. 7(2)(b)
F4: Words in Sch. 7A para. 8(1) substituted (with effect in accordance with Sch. 11 paras. 11, 12 of the amending Act) by Finance Act 2011 (c. 11), Sch. 11 para. 7(2)(c)
F5: Sch. 7A para. 8(2) substituted (with effect in accordance with Sch. 11 paras. 11, 12 of the amending Act) by Finance Act 2011 (c. 11), Sch. 11 para. 7(3)
F6: Words in Sch. 7A para. 8(2)(c) substituted (15.9.2016) by Finance Act 2016 (c. 24), s. 55(a)

Modifications

C1: Sch. 7A para. 8(1) applied by 1988 c. 1, Sch. 28A para. 13 (as inserted (with effect in accordance with Sch. 26 para. 5 of the amending Act) by Finance Act 1995 (c. 4), Sch. 26 para. 3)