Capital Allowances Act 2001 Schedule 3 paragraph 8

Changes in the law

Section Schedule 3 paragraph 8 provides a protective election mechanism allowing taxpayers to preserve the original tax consequences of pre-commencement events where the Capital Allowances Act 2001 would otherwise produce a different result.

• Where an event occurred before the Act's commencement date and the Act changes its tax consequences, the affected person may elect to preserve the original tax treatment
• If multiple persons are affected by the same event, all of them must make corresponding elections or none of the elections will have effect
• Elections must be notified to HMRC within the normal amendment time limit for income tax returns, or within two years of the end of the chargeable period for corporation tax
• The relevant commencement date is 6th April 2001 for income tax and 1st April 2001 for corporation tax