Explanatory Notes

Introduction

Part 14: Change in company ownership

Chapter 4: Company with investment business: restrictions on relief: asset transferred within group

Section 695: Notional split of accounting period in which change in ownership occurs

2158.This section deems the accounting period in which the change in ownership occurs to be split into two notional accounting periods for the purposes of this Chapter. It is based on sections 768C, 768D and 768E of ICTA.

2159.Subsection (3) requires amounts for the actual accounting period to be apportioned between the two notional accounting periods in accordance with section 702.