Finance Act 2022

PART 2 U.K. Commencement

4 (1) The amendments made by section 24(3) and paragraph 1 of this Schedule, and section 24(5) and paragraph 3 of this Schedule so far as they relate to those amendments, have effect— U.K.

(a) in relation to any accounting period of a claimant company beginning on or after the commencement day, and

(b) in relation to any period (“the loss period”) beginning on or after the commencement day in which any loss or other amount arises to a non-UK resident company.

(2) If an accounting period (a “straddling period”) of a claimant company begins before the commencement day and ends on or after that day—

(a) so much of the straddling period as falls before the commencement day, and

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

are to be treated as separate periods for the purposes of the provisions mentioned in sub-paragraph (1).

(3) The amount of the claimant company’s profits for the straddling period is to be attributed, on an apportionment in accordance with this paragraph, to those separate accounting periods.

(4) If the loss period of the non-UK resident company begins before the commencement day and ends on or after that day—

(a) so much of the loss period as falls before the commencement day, and

(b) so much of the loss period as falls on or after that day,

are to be treated as separate periods for the purposes of the provisions mentioned in sub-paragraph (1).

(5) The amount of the loss or other amount of the non-resident company for the loss period is to be attributed, on an apportionment in accordance with this paragraph, to those separate accounting periods.

(6) Any apportionment under this paragraph is to be made—

(a) on a time basis according to the respective lengths of the periods, or

(b) if that method produces a result that is unjust or unreasonable, on a just and reasonable basis.

5 (1) The amendments made by section 24(2) and paragraph 2 of this Schedule, and section 24(5) and paragraph 3 of this Schedule so far as they relate to those amendments, have effect in relation to accounting periods beginning on or after the commencement day. U.K.

(2) If an accounting period (a “straddling period”) of a surrendering company begins before the commencement day and ends on or after that day—

(a) so much of the straddling period as falls before the commencement day, and

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

are to be treated as separate periods for the purposes of the provisions mentioned in sub-paragraph (1).

(3) Any apportionment under this paragraph is to be made—

(a) on a time basis according to the respective lengths of the periods, or

(b) if that method produces a result that is unjust or unreasonable, on a just and reasonable basis.

6 (1) The amendments made by section 24(4), and section 24(5) and paragraph 3 of this Schedule so far as they relate to those amendments, have effect in relation to accounting periods beginning on or after the commencement day. U.K.

(2) If an accounting period (a “straddling period”) of a surrendering company begins before the commencement day and ends on or after that day—

(a) so much of the straddling period as falls before the commencement day, and

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

are to be treated as separate periods for the purposes of the provisions mentioned in sub-paragraph (1).

(3) Where the surrendering company surrenders any amount of loss that has been carried forward to the straddling period, it may determine how much (if any) of the loss is surrendered in relation to each of the separate accounting periods.

7 U.K. In this Part—

• “claimant company” has the meaning given by section 135(2) of CTA 2010;

• “commencement day” means 27 October 2021;

• “surrendering company” has the meaning given by section 99(7) of CTA 2010.