Part 2Charge to corporation tax: basic provisions
C1F3CHAPTER 3AUK RESIDENT COMPANIES: PROFITS OF FOREIGN PERMANENT ESTABLISHMENTS
Pt. 2 Ch. 3A applied by 2011 c. 11, Sch. 19 para. 15Z2(3) (as inserted (with effect in accordance with Sch. 9 para. 35 of the amending Act) by Finance Act 2018 (c. 3), Sch. 9 para. 2)
Exemption
18FEffect of election
1
An election made by a company under section 18A—
a
(subject to F1subsections (6) to (8) ) is irrevocable, and
b
applies to all accounting periods of the company beginning on or after the relevant day.
F22
The relevant day”, in relation to an election made by a UK resident company, means—
a
the day on which, at the time of the election, the company's accounting period following that in which the election is made is expected to begin, or
b
if the election is made before the company's first accounting period, the day on which that accounting period begins.
2A
“The relevant day”, in relation to an election made by a non-UK resident company, means the day on which the company becomes UK resident.
3
Subsection (4) applies if an accounting period of the company (“the straddling period”) begins before, and ends on or after, the relevant day.
4
It is to be assumed, for the purposes of the Corporation Tax Acts, that the straddling period consists of two separate accounting periods—
a
the first beginning with the straddling period and ending immediately before the relevant day, and
b
the second beginning with that day and ending with the straddling period.
5
Where for those purposes it is necessary to apportion the profits and losses for the straddling period to different parts of the period, that apportionment is to be made on a just and reasonable basis.
6
F4An election can be revoked by the company which made it at any time before the relevant day.
F57
An election made by a UK resident company is revoked if the company ceases to be UK resident.
8
An election made by a non-UK resident company is revoked if, having become UK resident, the company ceases to be UK resident.
Pt. 2 Ch. 3A inserted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 13 paras. 4, 31