Finance Act 2002

Election for spreading where paragraph 8 applies

9 (1) Where paragraph 8 applies the person who is chargeable to tax in respect of any adjustment charge may elect that the adjustment charge shall be spread over six periods of account in accordance with the following provisions.

(2) The election must be made—

(a) by notice in writing,

(b) to an officer of the Board,

(c) within the time allowed.

(3) The time allowed is—

(a) for income tax purposes, up to and including the 31st January following the tax year in which the change of basis occurs;

(b) for corporation tax purposes, within twelve months of the end of the first accounting period to which the new basis applies.

(4) If an election is made, then, in each of the six periods of account beginning with the first period to which the new basis applies an amount equal to one-sixth of the amount of the adjustment charge is treated as arising and chargeable to tax.

(5) If before the whole of the adjustment charge has been charged to tax the trade, profession or vocation is permanently discontinued, the whole of the amount so far as not previously brought into charge to tax is treated as arising and chargeable to tax immediately before the discontinuance.