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Section 269ZYB Provisional application of section 269ZYAF1F2

United Kingdom

(1)

This section applies in relation to a company and an accounting period if—

(a)

the conditions in section 269ZYA(3)(a) and (b) are met in relation to the accounting period, and

(b)

the company’s tax return for the accounting period is delivered before the end of the financial year in which the accounting period falls (“the relevant financial year”).

(2)

The company may make a declaration in the return for the accounting period that—

(a)

at all earlier times in the relevant financial year—

(i)

the company had no source of chargeable income (see section 269ZYA(2)), and

(ii)

if the company is a member of a group, each other member of the group had no source of chargeable income, and

(b)

the person intends to make a claim under section 269ZYA(3) in respect of the accounting period.

(3)

Until the declaration ceases to have effect, section 269ZYA has effect as if the company had made a claim under that section.

(4)

The declaration ceases to have effect if—

(a)

it is withdrawn,

(b)

it is superseded by a claim made under section 269ZYA, or

(c)

the company or, if the company is a member of a group, another member of the group, acquires a source of chargeable income before the end of the relevant financial year.

(5)

So far as not previously ceasing to have effect under subsection (4), the declaration ceases to have effect two years after the end of the accounting period in respect of which it is made.

(6)

If the declaration ceases to have effect, all necessary adjustments must be made, by assessment, amendment of returns or otherwise.

(7)

Subsection (6) applies despite any limitation on the time within which assessments or amendments may be made.

Annotations

Textual amendments

F1

Pt. 7ZA inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 16

F2

Ss. 269ZYA, 269ZYB inserted (with effect in relation to accounting periods beginning on or after 1.4.2020) by Finance Act 2020 (c. 14), Sch. 4 paras. 10, 42 (with Sch. 4 paras. 43-46)

Notes on Part 7ZA

Modifications

C1

Pt. 7ZA modified (retrospective to 29.10.2018) by Finance Act 2020 (c. 14), Sch. 4 para. 46

C2

Pt. 7ZA modified by 1992 c. 12, Sch. 7A para. 6(1C) (as inserted (with effect in relation to accounting periods beginning on or after 1.4.2020) by Finance Act 2020 (c. 14), Sch. 4 paras. 18(4), 42 (with Sch. 4 paras. 43-46))

C3

Pt. 7ZA applied (with modifications) (with effect in accordance with Sch. 4 para. 43(1) of the amending Act) by Finance Act 2020 (c. 14), Sch. 4 para. 44(4)

C4

Pt. 7ZA applied (with modifications) (with application in accordance with Sch. 4 para. 45(1)(2) of the amending Act) by Finance Act 2020 (c. 14), Sch. 4 para. 45(4)

C5

Pt. 7ZA disapplied (24.2.2022) by Finance Act 2022 (c. 3), Sch. 2 para. 21