Part 2 Plant and machinery allowances

F1Chapter 16ARestrictions on allowance buying

Qualifying change

212CWhen there is qualifying change in relation to C

(1)

There is a qualifying change in relation to C on the relevant day if one or more of conditions A to D is met.

(2)

Condition A is that—

(a)

the principal company or companies of C at the beginning of the relevant day is not, or are not, the same as at the end of that day, or

(b)

there is no principal company of C at the beginning of the relevant day but there is one, or are more than one, at the end of the relevant day.

(3)

Condition B is that—

(a)

any principal company of C is a consortium principal company (“CPC”), and

(b)

CPC's ownership proportion at the end of the relevant day is more than at the beginning of the relevant day.

(4)

Condition C is that F2the relevant activity is a trade (within the meaning of this Part) and on the relevant day—

(a)

C ceases to carry on the whole or part of the relevant F3activity, and

(b)

it begins to be carried on in partnership by two or more companies,

in circumstances in which Chapter 1 of Part 22 of CTA 2010 (transfers of trade without change of ownership) applies in relation to the transfer of the relevant F3activity.

(5)

Condition D is that—

(a)

the relevant F4activity is, at the beginning of the relevant day, carried on by C in partnership, and

(b)

C's relevant percentage share in the relevant F4activity at the end of the relevant day is less than at the beginning of the relevant day (or is nil).