Finance Act 2021

PART 15 Commencement

36 Part 6A of TIOPA 2010 has effect, and is deemed always to have had effect—

(a) with the amendments contained in Parts 2 to 3, 7, 10 and 13 of this Schedule, and

(b) with the amendment made by paragraph 26 so far as it applies in relation to a qualifying institutional investor that is an investment trust.

37 The amendments made by Parts 1, 4, 5, 8, 9, 11, 12 and 14 of this Schedule (except that made by paragraph 26 so far as it applies by virtue of paragraph 36(b)) have effect—

(a) in the case of their application to Chapter 6 of Part 6A of TIOPA 2010, in relation to excessive deductions in relation to which the relevant PE period begins on or after the day on which this Act is passed,

(b) in the case of their application to Chapter 9 or 10 of Part 6A of TIOPA 2010, in relation to accounting periods beginning on or after that date, and

(c) in the case of their application to any other Chapter of Part 6A of TIOPA 2010, in relation to—

(i) payments made on or after that date, or

(ii) quasi-payments in relation to which the payment period begins on or after that date.

38 (1) For the purposes of paragraph 37, where there is a straddling period—

(a) so much of the straddling period as falls before the day on which this Act is passed, and so much of it as falls on or after that date, are to be treated as separate accounting periods or taxable periods (as the case may be), and

(b) if it is necessary to apportion an amount for the straddling period to the two separate periods, it is to be apportioned—

(i) on a time basis, according to the respective length of the separate periods, or

(ii) if that would produce a result that is unjust or unreasonable, on a just and reasonable basis.

(2) A “straddling period” is an accounting period or payment period (as the case may be) beginning before the day on which this Act is passed and ending on or after that date.

39 (1) Notwithstanding paragraph 37, a taxpayer may make an election (a “Part 4 retrospection election”) that the amendments made by Part 4 of this Schedule are to be deemed always to have had effect in relation to the taxpayer.

(2) A Part 4 retrospection election must be made on or before 31 December 2021.

(3) Sub-paragraphs (4) to (9) apply where a Part 4 retrospection election is made by a taxpayer.

(4) The taxpayer may, in consequence of the Part 4 retrospection election, make reasonable adjustments to claims, returns and elections made before the Part 4 retrospection election.

(5) Any such adjustments must be made on or before 31 December 2021 but, subject to that, the time limits otherwise applicable to amending or withdrawing the claim, return or election in question do not prevent an adjustment being made under sub-paragraph (4).

(6) Sub-paragraph (7) applies where—

(a) before the Part 4 retrospection election is made, the taxpayer has made a group relief claim, and

(b) under sub-paragraph (4), the taxpayer withdraws the group relief claim, or withdraws the group relief claim and replaces it with a group relief claim for a lesser amount.

(7) The surrendering company may make such adjustments to claims, returns and elections made before the Part 4 retrospection election as are reasonably necessary in consequence of the withdrawal, or the withdrawal and replacement, of the group relief claim.

(8) Any such adjustments must be made on or before 31 December 2021 but, subject to that, the time limits otherwise applicable to amending or withdrawing the claim, return or election in question do not prevent an adjustment being made under sub-paragraph (7).

(9) In sub-paragraphs (6) to (8)—

• “group relief claim” means—

  (a)

  a claim for group relief under Part 5 of CTA 2010, or

  (b)

  a claim for group relief for carried-forward losses under Part 5A of CTA 2010;

• “surrendering company” has the same meaning as in Part 5 or 5A (as the case may be) of CTA 2010.

40 (1) Part 6 of this Schedule (allocation of dual inclusion income within group) has effect in relation to accounting periods of a claimant company that begin on or after 1 January 2021.

(2) A “claimant company” is a company that makes an allocation claim for the purposes of Chapter 12A of Part 6A of TIOPA 2010 (inserted by Part 6 of this Schedule).

(3) For the purposes of sub-paragraph (1), where there is a straddling period—

(a) so much of the straddling period as falls before 1 January 2021, and so much of it as falls on or after that date, are to be treated as separate accounting periods, and

(b) if it is necessary to apportion an amount for the straddling period to the two separate periods, it is to be apportioned—

(i) on a time basis, according to the respective length of the separate periods, or

(ii) if that would produce a result that is unjust or unreasonable, on a just and reasonable basis.

(4) A “straddling period” is an accounting period beginning before 1 January 2021 and ending on or after that date.