Corporation Tax Act 2010 section 690

Amount B

Section 690 explains how to calculate "Amount B" for the purposes of determining whether there has been a significant increase in a company's capital following a change in ownership (as used in section 688).

• Amount B is the highest daily capital figure that was sustained for at least 60 consecutive days during the five-year period after the change in ownership.
• The calculation starts by identifying all daily capital amounts throughout the post-change period and selecting the highest one.
• If that highest amount was maintained without any lower daily figure for a continuous 60-day stretch, it becomes Amount B; if not, the next highest daily amount is tested in the same way.
• This iterative process continues, working down through successively lower daily amounts, until a figure is found that was sustained for at least 60 days — that figure is Amount B.