Finance Act 2003

Accounting period for company in administration U.K.

1 (1) Section 12 of the Taxes Act 1988 (corporation tax: basis of, and periods for, assessment) is amended as follows. U.K.

(2) In subsection (3), after paragraph (d) insert—

“(da) the company ceasing to be in administration;”.

(3) After subsection (5A) insert—

“(5B) For the purposes of subsection (3)(da) a company ceases to be in administration when it ceases to be in administration under Schedule B1 to the Insolvency Act 1986 or any corresponding event occurs otherwise than under that Act.”.

(4) In subsection (7) (accounting periods where company is wound up), after the words “subject to” insert

“ subsection (7ZA) below and ”.

(5) After subsection (7) insert—

“((7ZA)) Notwithstanding anything in subsections (1) to (6) above, where a company enters administration—

(a) an accounting period of the company shall end immediately before the day the company enters administration, and

(b) if immediately before the company enters administration it is in the course of being wound up, subsection (7) ceases to apply at the end of that accounting period.

For this purpose a company enters administration when it enters administration under Schedule B1 to the Insolvency Act 1986 or is subject to any corresponding procedure otherwise than under that Act.”.

(6) In subsection (7A) for “subsections (1) to (7)” substitute “ subsections (1) to (7ZA) ”.