SCHEDULES
SCHEDULE 1Minor and consequential amendments
Part 2Other enactments
Capital Allowances Act 2001 (c. 2)
486
1
Amend section 112 (excess allowances: connected persons) as follows.
2
In subsection (1) for paragraph (b) and the “and” immediately after that paragraph substitute—
b
the transaction was not effected (or, if more than one, none of the transactions was effected) on the occasion of a change in the persons carrying on the qualifying activity—
i
which falls within section 343(1) of ICTA (company reconstructions without change of ownership), or
ii
in relation to which Condition A or Condition B is met, and
3
After subsection (1) insert—
1A
Condition A is that—
a
at least one person who carried on the qualifying activity immediately before or immediately after the change was within the charge to income tax in respect of that activity, and
b
at least one person who carried on the qualifying activity before the change continued to carry it on after the change.
1B
Condition B is that—
a
the qualifying activity was carried on in partnership both immediately before and immediately after the change,
b
a company that was within the charge to corporation tax in respect of the activity carried it on immediately before or immediately after the change, and
c
at least one company which carried the activity on before the change continued to carry it on after the change.