Corporation Tax Act 2010 section 678

Notional split of accounting period in which change in ownership occurs

Section 678 explains how the accounting period in which a change of company ownership occurs is split into two notional accounting periods for the purposes of this Chapter.

• When a change in ownership occurs partway through an accounting period, that period (the "actual accounting period") is treated as two separate "notional accounting periods".
• The first notional accounting period runs from the start of the actual accounting period up to and including the date of the ownership change.
• The second notional accounting period covers the remainder of the actual accounting period after the change.
• The relevant amounts for the actual accounting period are apportioned between the two notional accounting periods in accordance with section 685.