400. Effect of company reconstruction.

Where a company reconstruction occurs without a change of ownership1 it has the following effect.

Entitlement to relief for pre-1 April trade losses carried forward against subsequent trade profits2 is given to the successor3 in relation to a loss:


    (1)     which is made by the predecessor4 in the transferred trade; and


    (2)     for which relief would have been given5 to the predecessor had it continued to carry on the trade6.

Provisions concerning the application of the Capital Allowances Act 2001 are modified as follows7:


    (a)     any allowances or charges are to be made to or on the successor if such allowances