Corporation Tax Act 2010 section 269CG

The "start-up period"

Section 269CG defines the "start-up period" for banking companies carrying on relevant regulated activities, and explains how that period may be shortened or eliminated when a company is part of, joins, or is joined by members of a group.

• A banking company's start-up period is normally 5 years from the day it first begins to carry on a relevant regulated activity.
• If the company belongs to a group where other members already carry on relevant regulated activities, the start-up period may be shortened to align with the earliest start date in the group — or may not exist at all if any group member started more than 5 years earlier.
• When group membership changes during the start-up period — either because the company joins a new group or a new member joins its group — the start-up period may be curtailed or lost, depending on the significance of the regulated activities involved and when they began.
• References to group membership include partnerships, and section 269CL sets out how to determine when a company first begins to carry on a relevant regulated activity.