Taxes Consolidation Act 1997 Schedule 9 paragraph 4

Pre-change circumstances are disregarded

Schedule 9, paragraph 4 provides that once a change in ownership has triggered a restriction of loss relief, the pre-change circumstances are disregarded when determining whether any further change in ownership has occurred.

• Applies where loss relief has already been restricted under section 401 or section 679(4) following a change in ownership.
• Transactions or circumstances before the relevant change in ownership are ignored when testing for any subsequent change in ownership.
• Prevents the same pre-change events from being counted twice — once to restrict relief and again to trigger a further restriction.
• Ensures that only events after the initial change in ownership are relevant to any future ownership test.