Part 3

Trading income
Chapter 15

Post-cessation receipts

Election to carry back

Election given effect in accounting period in which receipt is received
200
1
If a company makes an election under section 198, the additional tax is payable for the accounting period in which the receipt is received (and not for the accounting period in which the cessation occurred).
2
In subsection (1) “the additional tax” means an amount of tax equal to the difference between—
a
the amount of tax that is chargeable on the company for the accounting period in which the cessation occurred (“amount A”), and
b
the amount of tax that would have been chargeable on the company for that period if the election had not been made (“amount B”).
3
If—
a
the company has made, under section 198, one or more other elections for receipts to be treated as received in the period in which the cessation occurred, and
b
effect has been given to those elections,
the effect of those elections is taken into account in determining amounts A and B.
Pt. 3 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 4(1)
Pt. 3 Ch. 15 applied (with modifications) (22.7.2020) by Finance Act 2020 (c. 14), Sch. 16 para. 2(3)(b)