Part 21: Other provisions
Miscellaneous profits and losses: apportionment to accounting periods ending before 1 April 2009
3579.Section 1307 applies to various sources of income that are taxed under Schedule D Case VI in the source legislation. It rewrites section 72 of ICTA which allows the profits of a period of account to be apportioned.
3580.The basis of assessment for such income is the full amount of the profit arising in the accounting period (section 8). If accounts are prepared for any of these sources it may be necessary to apportion the profits of accounts made up to a period which is not itself an accounting period to arrive at the figure of profit that arises in each relevant accounting period.
3581.Section 1329 provides that the Act takes effect for corporation tax purposes for accounting periods ending after 31 March 2009. This paragraph provides that the rewritten legislation applies to a period of account that straddles 1 April 2009 even though an accounting period or periods ending before 1 April 2009 are affected. This Act includes a number of minor changes in the law. Without this paragraph it would be necessary for taxpayers to take account of those changes only for the accounting period ending on or after 1 April 2009.
3582.If the taxpayer does not want the new law to apply to a transaction that occurred before 1 April 2009 it can elect for the old legislation to continue to apply (see Part 2 of this Schedule).
Charge to tax under Case VI of Schedule D in subordinate legislation
3583.These paragraphs preserve the effect of references to Schedule D Case VI in subordinate legislation. Where a provision such as section 396 of ICTA refers to something “within the charge to corporation tax under Case VI of Schedule D”, that reference is sufficient to pick up any such part of the charge as is applied in secondary legislation. For an example of this, see paragraph 58 of the Authorised Investment Funds (Tax) Regulations 2006 (SI 2006/964).
3584.Such references to Schedule D Case VI are replaced by references to provisions in the table in section 834A of ICTA (which is inserted by Schedule 1 to this Act). The first paragraph ensures that such parts of the charge to corporation tax that are in secondary legislation are treated as within the table in that section. The second paragraph ensures that any such secondary legislation that had effect for the purposes of loss relief in respect of a transaction to which Schedule D Case VI applied continues to have equivalent effect.
