Finance Act 2009

Entry notice: conditions for company U.K.

5 (1) Section 109 (entry notice) is amended as follows. U.K.

(2) After subsection (2) insert—

“(2A) Subsection (2B) applies where a company—

(a) does not expect to satisfy Condition 3 of section 106 on the first day of an accounting period, but

(b) reasonably expects to satisfy that Condition throughout the rest of the accounting period.

(2B) Where this subsection applies—

(a) subsection (2)(c) does not apply, but

(b) the notice under subsection (1) must be accompanied by a statement by the company containing the assertions specified in subsection (2C).

(2C) Those assertions are—

(a) that Conditions 1, 2, 4, 5 and 6 of section 106 are reasonably expected to be satisfied in respect of the company throughout the specified accounting period, and

(b) that Condition 3 of section 106 is reasonably expected to be satisfied in respect of the company for at least a part of the first day of the specified accounting period, and throughout the remainder of that period.”

(3) In subsection (3), omit “by reason only that its shares have not been listed and dealt with on a recognised stock exchange within the preceding 12 months,”.

(4) In subsection (5)—

(a) after “Conditions 1, 2,” insert “ 3, ” and

(b) omit paragraph (b) (but not the “and” at the end).

(5) Insert at the end—

“(6) A company may take advantage both of subsections (2A) to (2C) and of subsections (3) to (5) (in which case the assertion under subsection (2C)(a) should omit reference to Condition 4 and the assertion under subsection (5)(a) should omit reference to Condition 3.”

(6) The amendments made by this paragraph have effect in relation to accounting periods beginning on or after 22 April 2009.