Corporation Tax Act 2010 section 705A

Introduction to Chapter

Section 705A introduces Chapter 5A, which applies when there is a change in ownership of a shell company, and defines key terms used throughout the chapter.

• The chapter applies specifically when a shell company undergoes a change of ownership
• A shell company is one that does not carry on a trade, is not a company with investment business, and does not carry on a UK property business
• "The change in ownership" and "the company" are defined terms that refer back to the specific shell company and ownership change in question
• All three conditions in the definition of a shell company must be met — if the company is doing any one of those activities, it is not a shell company for these purposes