SCHEDULES

SCHEDULE 1Minor and consequential amendments

Part 2Other enactments

Capital Allowances Act 2001 (c. 2)

495

1

Amend section 263 (qualifying activities carried on in partnership) as follows.

2

For subsection (1)(c) substitute—

c

if the qualifying activity is a trade or property business, the condition in subsection (1A) or (1B) (whichever is appropriate) is met.

3

For subsection (1A) substitute—

1A

For income tax purposes, the condition is that a person carrying on the trade or property business immediately before the change continues to carry it on after the change.

1B

For corporation tax purposes, the condition is that a company carrying on the trade or property business in partnership immediately before the change continues to carry it on in partnership after the change.