Introduction Overview Overview Section 673: Introduction to Chapter
2082.This section introduces the Chapter. It is based on sections 6, 768, 768A and 834 of ICTA.
2083.Subsections (1) to (3) lay down the conditions for the Chapter to apply.
2084.Subsection (2) omits as otiose the words “either earlier or later in the period, or at the same time” in sections 768(1) and 768A(1) of ICTA.
2085.Section 767A(4)(b) of ICTA refers to a “significant revival” of activities; sections 768(1)(b) and 768B(1)(c) of ICTA refer to a “considerable revival” of a trade or business. Sections 768(1)(b) and 768B(1)(c) contrast “considerable” with “small or negligible”; in section 767A(4)(b), the contrast is not only with “small or negligible” but also with cessation. The rewrite of these provisions eliminates this variation by consistently using “significant” in subsection (3)and sections 677(2) and (4), 704(3) and 705(3).
2086.Subsection (4) defines, non-exhaustively, “major change in the nature or conduct of a trade”. The phrase “major change” has been retained in this definition, because there is case law on it: Willis v Peeters Picture Frames Ltd(1982), 56 TC 436 CA(NI)(3) and Purchase v Tesco Stores Ltd (1984), 58 TC 46 HC.(4) For the same reason, the phrase “major change” has also been retained in the similar definitions in sections 677(5), 704(10) and 705(9).
2087.Subsection (5) defines “the change in ownership”, “the company” and “trade” for the purposes of this Chapter. It defines “trade” to include an office, but does not define “trade” to include “vocation”. This is a minor change in the law. See Change 4 in Annex 1.