Section 203 Elections under section 200 or 202

In this section “election” means election under section 200 or 202.

An election must be made by being included (whether by amendment or otherwise) in the disadvantaged person's company tax return for the chargeable period in which the relevant F1borrowing first occurs.

An election is irrevocable.

An election has effect in relation to each of the affected persons for the chargeable period in which the relevant F2borrowing first occurs and all subsequent chargeable periods.

An election is of no effect if the Commissioners for Her Majesty's Revenue and Customs give the disadvantaged person a notice refusing to accept the election.

A notice under subsection (5) may be given only after a notice of enquiry in respect of the company tax return containing the election has been given to the disadvantaged person.

(Paragraph 24 of Schedule 18 to FA 1998 makes provision about notices of enquiry in respect of company tax returns.)

If an election has effect in relation to an accounting period of the advantaged person, the tax mentioned in subsection (1)(b) of the section under which the election is made—

In this section—

• “the advantaged person”, “the disadvantaged person” and “the relevant F3borrowing”—

  1. (a)

     in relation to an election under section 200, have the meaning given by section 199, and

  2. (b)

     in relation to an election under section 202, have the meaning given by section 201, and

• “company tax return” means the return required to be delivered pursuant to a notice under paragraph 3 of Schedule 18 to FA 1998, as read with paragraph 4 of that Schedule.

For the purposes of subsections (2) and (4), if the relevant F4borrowing first occurred in a chargeable period beginning before 1st April 2004 it is to be treated as if it had F5first borrowed in the chargeable period beginning on that date.