711Conditions relating to company's trade or businessU.K.
(1)The following are the conditions mentioned in section 710(1)(c).
(2)Condition A is that—
(a)in the period of 3 years before the change in the ownership of X, the activities of a trade or business of X cease or the scale of those activities becomes small or negligible, and
(b)there is no significant revival of those activities before the change occurs.
(3)Condition B is that after the change in the ownership of X, but under arrangements made before it, the activities of a trade or business of X cease or the scale of those activities becomes small or negligible.
(4)Condition C is that—
(a)there is a major change in the nature or conduct of a trade or business of X in the relevant 6 year period,
(b)a relevant transfer of assets of X occurs—
(i)in the period of 3 years before the change in the ownership of X, or
(ii)after the change but under arrangements made before it, and
(c)the major change mentioned in paragraph (a) is attributable to that transfer.
(5)In this section—
“the relevant 6 year period” means the period of 6 years beginning 3 years before the change in the ownership of X,
“relevant transfer”, in relation to assets of X, means a transfer of those assets—
(a)to a person who had control of X at any time in the relevant period before the change in the ownership of X,
(b)to a person connected with a person mentioned in paragraph (a), or
(c)to a person under arrangements which enable any of those assets, or any assets representing those assets, to be transferred to a person mentioned in paragraph (a) or (b), and
“transfer”, in relation to an asset, includes—
(a)any disposal, letting or hiring of it,
(b)any grant or transfer of any right, interest or licence in or over it, and
(c)the giving of any business facilities with respect to it.
(6)For the meaning of “a major change in the nature or conduct of a trade or business”, see section 712.