What does Schedule 2 paragraph 12 of the Corporation Tax Act 2009 do?

Schedule 2 paragraph 12 establishes that the accounting period rules in section 10 relating to companies entering or leaving administration only apply where the company entered administration on or after 15 September 2003. Companies entering administration before that date are not affected by these rules and follow the rules that applied at that time.

What is the key date for the administration accounting period rules under section 10 of CTA 2009?

The key date is 15 September 2003. The administration-related accounting period rules in section 10(1)(i) and (j), along with the supporting provisions in section 10(2), (3) and (4), only apply to companies that entered administration on or after that date, regardless of the route into administration.

Does it matter how a company entered administration for paragraph 12 to apply?

No. Schedule 2 paragraph 12 applies regardless of whether the company entered administration under the formal procedure in the Insolvency Act 1986 or through any other mechanism. The only determining factor is whether the company entered administration on or after 15 September 2003.

What happens to accounting periods when a company enters administration after 15 September 2003?

Under section 10(1)(i) of the Corporation Tax Act 2009, the company's current accounting period ends immediately before it enters administration, and a new accounting period begins at that point. Similarly, under section 10(1)(j), an accounting period ends when the company ceases to be in administration.

Corporation Tax Act 2009 Schedule 2 para 12

Companies in administration

Schedule 2 paragraph 12 sets out the effective date for the rules in section 10 that deal with the start and end of accounting periods when a company enters or exits administration.

The administration-related accounting period rules in section 10 only apply to companies entering administration on or after 15 September 2003.
This covers administration under the Insolvency Act 1986 or any other route into administration.
The relevant provisions are section 10(1)(i) and (j), which trigger the end of an accounting period when a company enters or leaves administration, together with the supporting rules in section 10(2), (3) and (4).
Companies that entered administration before 15 September 2003 are not affected by these rules and would follow the accounting period rules that applied at that time.

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