Part 14 Change in company ownership

Chapter 3 Company with investment business: restrictions on relief: general provision

Meaning of “significant increase in the amount of a company's capital”

689 Amount A
(1) In section 688, amount A is the lower of—
(a) the amount of the company's capital immediately before the change in ownership, and
(b) the highest 60 day minimum amount for the pre-change year.
(2) The highest 60 day minimum amount for the pre-change year is found as follows.
Step 1 Find the daily amounts of the company's capital over the pre-change year.
Step 2 Take the highest of the daily amounts.
Step 3 Find out whether there was in the pre-change year a period of at least 60 days in which there was no daily amount lower than the amount taken.
Step 4 If there was, the amount taken is the highest 60 day minimum amount for the pre-change year. If there was not, take the next highest of the daily amounts and repeat step 3; and so on, until the highest 60 day minimum amount for the pre-change year is found.
(3) In this section “the pre-change year” means the period of one year ending immediately before the change in ownership.