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Common ownership of a trade (or part trade) is established by looking at the beneficial¹ owners of a company's ordinary share capital², which includes the interests of non-residents. Effectively, the interest in the trade carried on by a company is determined by reference to the proportion of the ordinary share capital held by a person in the predecessor and successor companies.

There is taken to be common ownership of a trade if the same person or persons owned at least 75% of the trade both³:

1. Ìý

   •ÌýÌýÌýÌý at some time within one year before the transfer of the trade, and

2. Ìý

   •ÌýÌýÌýÌý on or at any time within two years after that transfer

There is no minimum period throughout which the predecessor and successor companies must be in common ownership⁴).

For the purposes of determining ownership⁵:

1. Ìý

   (a)ÌýÌýÌýÌý a trade carried on by two or more persons is treated as belonging to them in the shares in which they