Corporation Tax Act 2010 section 941

The ownership condition

Section 941 sets out the ownership condition that must be satisfied for a transfer of a trade to qualify as a transfer without a change of ownership under Chapter 1 of Part 22.

• At least 75% of the interest in the transferred trade must belong to the same persons both before and after the transfer — specifically, within one year before and within two years after the transfer.
• Where the transferred trade's activities are absorbed into another trade, interests in the transferred trade are determined by reference to interests in that other trade.
• Where two or more companies carry on a trade, their interests correspond to their shares of the trade's profits; where trustees hold an interest, it is treated as belonging to the beneficiaries entitled to the income.
• For the purposes of comparing ownership before and after the transfer, trust beneficiaries over time are treated as a single person, and relatives (spouses, civil partners, ancestors, lineal descendants, brothers, and sisters) are also treated as a single person.