[F1357BCThe development conditionU.K.
(1)A company meets the development condition in relation to a right if condition A, B, C or D is met.
Section 357BD (meaning of “qualifying development”) applies for the purposes of this section.
(2)Condition A is that—
(a)the company has at any time carried out qualifying development in relation to the right, and
(b)the company has not ceased to be, or become, a controlled member of a group since that time.
(3)Condition B is that—
(a)the company has at any time carried out qualifying development in relation to the right,
(b)the company has ceased to be, or become, a controlled member of a group since that time,
(c)the company has, for a period of 12 months beginning with the day on which it ceased to be, or became, a controlled member of the group, performed activities of the same description as those that constituted the qualifying development, and
(d)the company remains a member of that group or (as the case may be) does not become a controlled member of any other group.
(4)Condition C is that—
(a)the company is a member of a group,
(b)another company that is or has been a member of the group has carried out qualifying development in relation to the right, and
(c)that other company was a member of the group at the time it carried out the qualifying development.
(5)Condition D is that—
(a)the company is a member of a group,
(b)another company that is or has been a member of the group has carried out qualifying development in relation to the right,
(c)that other company (“T”) or, where another member of the group begins to carry on the trade which T carried on immediately before becoming a member of the group, either or both of those companies have, while carrying on that trade as a member of the group, performed activities of the same description as those that constituted the qualifying development, and
(d)those activities of those companies, taken together, have been performed for a period of 12 months beginning with the day on which T became a member of the group.
(6)For the purposes of conditions A and B, a company becomes a controlled member of a group at any time if—
(a)another company (“P”) either becomes the holder of a major interest in the company, or begins to control the company, at that time, and
(b)immediately before that time the company was not associated with P or with any company associated with P immediately before that time.
(7)For the purposes of conditions A and B, a company ceases to be a controlled member of a group at any time if—
(a)every other company which immediately before that time held a major interest in, or controlled, the company ceases to do so, and
(b)as a result the company ceases to be associated with any of those companies.
(8)Where—
(a)a company ceases to be a controlled member of a group at any time, and
(b)at that time the company holds a major interest in, or controls, any other company,
that other company is to be treated for the purposes of conditions A and B as also having ceased to be a controlled member of the group at that time.
(9)In subsections (6) and (7) “associated” is to be read in accordance with section 357GD(3).
(10)The following provisions apply for the purposes of subsections (6) to (8)—
section 472 of CTA 2009 (meaning of “control”), and
sections 473 and 474 of CTA 2009 (meaning of “major interest”).
(11)A company that meets the development condition in relation to a right by virtue of the performance of the activities mentioned in subsection (3) or (5) for the period of 12 months so mentioned is to be regarded as meeting that condition in relation to the right during that period (as well as at any other time when the company meets the condition).]
Textual Amendments
F1Pt. 8A inserted (with effect in accordance with Sch. 2 paras. 7, 8 of the amending Act) by Finance Act 2012 (c. 14), Sch. 2 para. 1(1)