Corporation Tax Act 2010 section 429

The amount of the income

Section 429 sets out how to calculate the amount of income that arises under section 425 when a qualifying change of ownership occurs in relation to a company carrying on a leasing business in partnership.

• The starting point is to calculate a basic amount using the formula in section 421(3), treating the company as if it were the partner company referred to in that section, and then adjusting that basic amount under sections 404 to 406.
• The adjusted basic amount is then limited to an "appropriate percentage," which reflects the company's share of partnership profits or losses.
• If there is no qualifying change in the company's partnership interest on the relevant day, the appropriate percentage is the company's percentage share of partnership profits or losses on that day.
• If there is a qualifying change in the company's partnership interest on the relevant day, the appropriate percentage is the company's percentage share of partnership profits or losses at the end of that day, ensuring no double-counting with income calculated under section 417.