Capital Allowances Act 2001 section 212N

Old and new accounting periods

Section 212N deals with how accounting periods are split when a qualifying change occurs, creating an "old period" ending on the relevant day and a "new period" beginning the day after.

• When a qualifying change takes place, the current accounting period of company C ends on the relevant day and a new one begins the following day.
• Where company C carries on the relevant activity in partnership with other companies and conditions A, B or D apply, it is the partnership's accounting period that is split rather than C's own accounting period.
• The "old period" is the accounting period of C or the partnership that ends on the relevant day, and is used to determine whether there is an excess of allowances in the pool.
• The "new period" is the accounting period of C, the partnership, or the successor entity that begins the day after the relevant day, and is used to determine how any excess of allowances affects the capital allowance pools going forward.