Section 309 — Corporation Tax Act 2010: Accounting periods

Accounting periods 309 1 In this Chapter, in the case of a qualifying company— “ the commencement period ” means the accounting period in which the company sets up and commences its ring fence trade, “ post-commencement period ” means an accounting period beginning on or after 1 January 2006— which is the commencement period, or which ends after the commencement period, and “ pre-commencement period ” means an accounting period— beginning on or after 1 January 2006, and ending before the commencement period.

2 For the purposes of this Chapter, a company not within the charge to corporation tax which incurs any expenditure is to be treated as having such accounting periods as it would have if—

a it carried on a trade consisting of the activities in respect of which the expenditure is incurred, and b it had started to carry on that trade when it started to carry on the activities in the course of which the expenditure is incurred.

3 In the case of an accounting period (a “straddling period”) of a qualifying company beginning before 1 January 2006 and ending on or after that date—

a so much of the straddling period as falls before 1 January 2006, and b so much of the straddling period as falls on or after that date, are treated as separate accounting periods for the purposes of this Chapter.

4 But special provision is made elsewhere in this Chapter—

a in relation to straddling periods (see sections 311, 324 and 327(4) to (7)),

and b in relation to accounting periods which begin before, but end on or after, 5 December 2013 (see sections 311(1C), 318A and 328A).