Corporation Tax Act 2010 section 676AC

"Major change in the business" of a company

Section 676AC defines what constitutes a "major change in the business" of a company for the purposes of the rules on post-April 2017 losses where there is a change in a company's activities.

• A major change in the business includes changes in the nature, conduct or scale of a trade or business, as well as starting or stopping a particular trade or business altogether.
• Changes in the nature or conduct of a business cover shifts in the types of property dealt in, services provided, customers, outlets, markets, or the nature of investments held for an investment business.
• A major change still counts even if it resulted from a gradual process that began before the relevant 5-year or 8-year period specified in section 676AA(4).
• Transfers of a trade, business or property between two companies that are related to each other both immediately before the change in ownership and at the time of the transfer are disregarded when assessing whether a major change has occurred.