Corporation Tax Act 2010 section 1159

Approval

Section 1159 gives the Treasury the power to make regulations governing the approval process for investment trust status, including applications, ongoing requirements, and withdrawal of approval.

• The Treasury may create regulations covering all aspects of the approval process for investment trust status, from initial application through to potential withdrawal of approval.
• An application for approval can relate to the accounting period in which it is made (or another specified period) and, once granted, covers that period and all subsequent accounting periods automatically.
• HMRC may grant, refuse or withdraw approval based on conditions set out in the regulations, and a company whose approval has been withdrawn may be barred from reapplying — with withdrawal potentially backdated to an earlier accounting period.
• The first set of regulations under this section required affirmative approval by the House of Commons before coming into force, while subsequent regulations are subject to the negative procedure (annulment by resolution).