# Finance Act 2022, Paragraph 31: Corporation tax consequences of ceasing to be a QAHC

Extent: E+W+S+N.I.

(1) For the purposes of corporation tax, when a QAHC ceases to be a QAHC—
(a) a new accounting period begins on at the beginning of the day after the day on which it ceased to be a QAHC, and
(b) accordingly, its previous accounting period ended at the end of the day on which it ceased to be a QAHC.
(2) The following are to be treated, for the purposes of corporation tax, as sold by a QAHC immediately before it ceased to be a QAHC and reacquired by that company immediately after the start of that new accounting period—
(a) any overseas land it holds;
(b) any loan relationship or derivative contract the QAHC is party to for the purposes of an overseas property business of the QAHC, to the extent (apportioned on a just and reasonable basis)—
(i) the relationship or contract is attributable to those purposes, and
(ii) profits arising from that relationship or contract were exempt from corporation tax as a result of paragraph 52(4);
(c) any qualifying shares it holds.
(3) The sale and reacquisition deemed under sub-paragraph (2) is to be treated as being for a consideration equal to the market value of the assets immediately before the QAHC ceased to be a QAHC.
(4) Paragraph 11 of Schedule 7AC to TCGA 1992 has effect as if any reference to a “deemed disposal and reacquisition” did not include a deemed sale and reacquisition under sub-paragraph (2) of this paragraph.

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Source: https://www.legislation.gov.uk/ukpga/2022/3/schedule/2/paragraph/31 (the official version)
Page: https://openlegislation.uk/finance-act-2022/schedule-2/paragraph-31
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.