Introduction Details of the Schedule
2.Schedule 26 Part 1 amends Chapter 16A CAA 2001.
3.Paragraph 2 amends 212B makes consequential amendments and introduces the requirement for a qualifying change to meet the “limiting conditions”.
4.Paragraph 3 inserts 212LA after 212L providing the four limiting conditions.
5.Subsection (2) provides that Condition A is met where the relevant excess of allowances is £50 million or more.
6.Subsection (3) explains Condition B. Where the relevant excess of allowances is £2 million or more but less than £50 million and the amount is not insignificant in the context of the value of the benefits obtained by a “relevant person” through the qualifying change or “change arrangements” then Condition B is met.
7.Subsection (4) defines “relevant person” as the company acquiring the company or the activity in partnership or any person connected with the company acquiring the company or trade.
8.Subsection (5) explains Condition C. This is met if the amount of the relevant excess of allowances is less than £2 million and the qualifying change has an unallowable purpose. The subsection refers to section 212M which provides the definition of unallowable purpose.
9.Subsection (6) explains Condition D. This is met if there are arrangements the purpose of which is to procure that the relevant excess allowance is below the £50 million or £2 million tests or to procure that the relevant excess of allowances is a smaller proportion of the total amount or value of the benefits referred to in Condition B.
10.Subsection 7 defines the amount of the relevant excess and arrangements.
11.Paragraph (4) renames Chapter 16A “restrictions on allowance buying”.
12.Paragraphs 5-12 extend the restrictions on allowance buying to all other qualifying activities (under section 15 of CAA 2001) and provides the consequential amendments arising from this extension.
13.Paragraph 13 provides that the amendments apply to a qualifying change on or after 20 March 2013, unless either arrangements to bring about the qualifying change had been entered into before that date or there was an agreement or common understanding between the parties as to the principal terms on which the qualifying change will be brought about.