Corporation Tax Act 2010 section 676DB

Notional split of accounting period in which change in ownership occurs

Section 676DB provides for the accounting period in which a change in company ownership occurs to be notionally split into two separate periods, with the first ending on the date of the ownership change.

• The accounting period in which the ownership change takes place is treated as two notional accounting periods: one ending on the date of the change and one covering the remainder
• The apportionment rules in section 702 are used to allocate relevant amounts between the two notional periods
• Figures from the actual accounting period listed in the section 702 table must be split across the two notional periods in accordance with those apportionment rules
• The terms "actual accounting period" and "notional accounting periods" carry the same meaning throughout this chapter and in sections 702 and 703 as they apply here