Part 5

Mineral extraction allowances
Chapter 5

Other kinds of qualifying expenditure

“Notional accounting period”
416ZB
1
For the purposes of section 416ZA “
notional accounting period
”, in relation to a person (“the former trader”) who has ceased to carry on a ring fence trade, means each of the following periods—
a
the period that—
i
begins with the day following the last day on which the former trader carried on the ring fence trade, and
ii
ends with the day on which the first termination event subsequently occurs, and
b
each period that—
i
begins with the day following the last day of a period determined under paragraph (a) or this paragraph, and
ii
ends with the day on which the first termination event subsequently occurs.
2
But there are to be no notional accounting periods after the end of the post-cessation period (see subsection (4)).
3
“
Termination event
”, in relation to a notional accounting period, means each of the following—
a
the end of the period of 12 months beginning with the first day of the notional accounting period,
b
the occurrence of an accounting date of the former trader or, if there is a period for which the former trader does not make up accounts, the end of that period (but see subsections (6) and (7)), and
c
the end of the post-cessation period.
4
“
The post-cessation period
” means the period that—
a
begins with the day following the last day on which the former trader carried on the ring fence trade, and
b
ends with the day on which the appropriate authority is satisfied that the restoration of the relevant site has been completed.
5
In subsection (4) “
the appropriate authority
” means—
a
in the case of restoration falling within section 416ZA(7)(c), the Secretary of State, and
b
in any other case, such person or body as the Commissioners for Her Majesty's Revenue and Customs may specify.
6
If the former trader—
a
carries on more than one trade,
b
makes up accounts of any of them to different dates, and
c
does not make up general accounts for the whole of the former trader's activities,
subsection (3)(b) applies with reference to the accounting date of such one of the trades as the former trader may determine.
7
If the Commissioners for Her Majesty's Revenue and Customs are of the opinion, on reasonable grounds, that a date determined by the former trader for the purposes of subsection (6) is inappropriate, the Commissioners may by notice direct that the accounting date of such other of the trades referred to in that subsection as appears to the Commissioners to be appropriate is to be used instead.
8
Expressions used in this section and in section 416ZA have the same meaning in this section as they do in that section.
S. 45H(2) modified (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 7
Ss. 416ZA, 416ZB inserted (with effect in accordance with s. 92(10) of the amending Act) by Finance Act 2013 (c. 29), s. 92(5)