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Legislation
Corporation Tax Act 2010

Crossheading Qualifying changes of ownership in relation to partner company

  • Section 425 Partner company's income and matching expense in different accounting periods
  • Section 426 Amount of income and expense
  • Section 427 No carry back of loss against the income
  • Section 428 Relief for expense otherwise giving rise to carried forward loss
  • Section 429 The amount of the income
  1. Qualifying changes of ownership in relation to partner company
  2. The amount of the income

Section 429 | The amount of the income

From legislation.gov.uk

(1)This section determines the amount of the income under section 425 when a qualifying change of ownership in relation to a company carrying on a business of leasing plant or machinery in partnership with other persons occurs on any day (“the relevant day”).

(2)The amount of the income is found by first—

(a)applying the formula in section 421(3) to give the basic amount (as if the company were “the partner company” mentioned in section 421), and

(b)making any adjustment in accordance with any of sections 404 to 406 to the basic amount.

(3)The amount is then limited to the appropriate percentage of the amount given as a result of subsection (2).

(4)If there is no qualifying change in the company's interest in the business on the relevant day, the appropriate percentage is the percentage share of the company in the profits or loss of the business on the relevant day.

(5)If there is a qualifying change in the company's interest in the business on the relevant day, the appropriate percentage is the percentage share of the company in the profits or loss of the business at the end of the relevant day.

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