This is already given concessionally. The section enables the right to capital allowances, and liability for balancing charges and relief for losses to be carried over from one company to another where on or after April 5th, 1976 a trading company ceases to carry on a trade and thereafter another company carries it on, provided there is substantial identity in the ownership of the trade before and after the change. Where the conditions of the section are fulfilled the successor company in effect steps into the shoes of the predecessor for the purpose of capital allowances, balancing charges and losses.

The test of succession is 75 per cent.

Yes.

Of the total company or of the original shares?

Of the trade by way of share ownership.

All the directors own 75 per cent in both or one director owns 75 per cent?

75 per cent ownership of the trade by shares.

The company goes and those directors own the whole company and form a new company and the new directors own 25 or 26 per cent.

No. In each case it has to be the same person or persons who owned the 75 per cent of the trade of the old company.

If he owned 100 in the first and 75 in the second is that all right?

Yes. There is very little change.

In the event of a death how is the situation affected? The definition does not provide for executors. It is only a person who can be recognised by the company as the owner until the property is administered and agreed to by the directors. That does not seem to be specifically provided for. Would the Minister have a look at that with reference to dealing with that type of situation?

I will.