Finance Act 2022

Election to accelerate chargeU.K.

73(1)If the trader is liable to a charge to income tax for a tax year on an amount of the transition profits for the tax year 2023-24 (see Step 5 of the calculation in paragraph 70(2) and paragraph 72), the trader may elect for an additional amount of those profits to be treated as arising in the tax year.

(2)The election must be made on or before the first anniversary of the normal self-assessment filing date for the tax year to which it relates.

(3)The election must specify the amount of the transition profits to be treated as arising in the tax year (which may be any amount of those profits not previously charged to tax).

(4)If an election is made, paragraph 72 applies in relation to any subsequent tax year as if the amount of the transition profits (as reduced by any previous application of this paragraph) were reduced by the amount given by the following formula—

where—

  • A is the additional amount of the transition profits treated as arising in the tax year for which the election is made;

  • T is the number of tax years remaining after that tax year in the period of five tax years referred to in paragraph 72.