Income and Corporation Taxes Act 1988

Accounting periodsU.K.

[F13(1)In this Schedule, in the case of any qualifying company,—

  • “the commencement period” means the accounting period in which the company sets up and commences its ring fence trade;

  • “post-commencement period” means any accounting period ending on or after 1st January 2004 [F2but before 1st January 2006]—

    (a)

    which is the commencement period, or

    (b)

    which ends after the commencement period;

  • “pre-commencement period” means any accounting period ending—

    (a)

    on or after 1st January 2004 [F3but before 1st January 2006], and

    (b)

    before the commencement period.

(2)For the purposes of this Schedule a company not within the charge to corporation tax which incurs qualifying E&A expenditure is to be treated as having such accounting periods as it would have if—

(a)it carried on a trade consisting of the activities in respect of which the expenditure is incurred, and

(b)it had started to carry on that trade when it started to carry on the research and development on which the expenditure is incurred.

[F4(3)In the case of an accounting period (a “straddling period”) of any qualifying company beginning before 1st January 2006 and ending on or after that date—

(a)so much of the straddling period as falls before 1st January 2006, and

(b)so much of the straddling period as falls on or after that date,

are treated as separate accounting periods for the purposes of this Schedule.

(4)Special provision is made elsewhere in this Schedule in relation to straddling periods (see paragraphs 16, 18A and 22).]]

Textual Amendments