ACT: set-off against CT on profits: capacity buying: conditions
ICTA88/S245 (1) & (7)
Section 245 applied, whether or not there was any avoidance motive, where:
- within any period of three years there was both a change in the ownership of a company and a major change in the nature or conduct of a trade or business carried on by the company,
- where there was a change in the ownership of a company at a time when the scale of its trading or other business activities had become small or negligible.
ICTA88/S769, which defines change in ownership of a company for ICTA88/S768 purposes,also applied to Section 245 (see CTM06340 to CTM06350). Forinformation on:
- the meaning of ‘major change’ refer to CTM20320,
- the provision about the scale of activities becoming small or negligible, refer to CTM06390.
The following Section 768 provisions also applied to Section 245:
- subsection 8 - extended time limit for making assessments,
- subsection 9 - information powers (see CTM06340).