Part 2

Regional secondary contributions holiday for new businesses

Starting a new business
5
1
P “starts” a new business when P begins to carry on a new business.
2
A business is not a “new” business if—
a
P has, at any time during the period of 6 months ending with the time when P begins to carry it on, carried on another business consisting of the activities of which the business consists (or most of them), or
b
P carries it on as a result of a transfer (within the meaning of subsection (3)).
3
P carries on a business as a result of a transfer if P begins to carry on the business on another person ceasing to carry on the activities of which it consists (or most of them) in consequence of arrangements involving P and the other person.
4
For the purposes of subsection (3) P is to be taken to begin to carry on a business on another person ceasing to carry on such activities if—
a
the business begins to be carried on by P otherwise than in partnership on such activities ceasing to be carried on by persons in partnership, or
b
P is a number of persons in partnership who begin to carry on the business on such activities ceasing to be carried on—
i
by a person, or a number of persons, otherwise than in partnership,
ii
by persons in a partnership not consisting only of all the persons constituting P, or
iii
partly as mentioned in sub-paragraph (i) and partly as mentioned in sub-paragraph (ii).
5
P is not to be regarded as starting a new business by beginning to carry on a business if—
a
before P begins to carry on the business, P is a party to arrangements under which P may (at any time during the relevant period) carry on as part of the business activities carried on by any other person, and
b
the business would have been prevented by subsection (2)(b) from being a new business had—
i
P begun to carry on the activities when beginning to carry on the business, and
ii
the other person at that time ceased to carry them on.
6
In this section “business” means something which is—
a
a trade, profession or vocation for the purposes of the Income Tax Acts or the Corporation Tax Acts,
b
a property business (within the meaning of section 263(6) of the Income Tax (Trading and Other Income) Act 2005), or
c
an investment business (that is, a business consisting wholly or partly of making investments).