Section 676AC | “Major change in the business” of a company

(1)In this Chapter references to a “major change in the business” of a company include—

(a)a major change in the nature or conduct of any trade or business carried on by the company,

(b)a major change in the scale of any trade or business carried on by the company, and

(c)beginning or ceasing to carry on a particular trade or business.

(2)In subsection (1) the reference to 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 concerned,

(b)a major change in customers, outlets or markets of the trade or business concerned,

(c)a major change in the nature of the investments held by the company for the purposes of an investment business.

(3)The definitions in subsections (1) and (2) apply even if the change is the result of a gradual process which began before the period of 5 years mentioned in section 676AA(4)(a) or (as the case may be) the period of 8 years mentioned in section 676AA(4)(b).

(4)Where the condition in subsection (5) is met in the case of any two companies, the transfer of a trade or business, or any property, from one of them to the other is to be disregarded in determining for the purposes of section 676AA(3) whether or not there is a major change in the business of either of those companies.

(5)The condition is that the companies are related to one another both—

(a)immediately before the change in ownership, and

(b)at the time of the transfer mentioned in subsection (4).