Corporation Tax Act 2010 section 356JI

Reference periods

Section 356JI defines how an accounting period is divided into "reference periods" when a company's share of equity in licensed areas within a cluster area changes during the accounting period.

• The section applies where a company holds a licence in one or more areas (relevant areas) wholly or partly within a cluster area, and its equity share in at least one of those areas varies on different days in the accounting period.
• The accounting period is split into consecutive reference periods, each beginning on the first day of the accounting period or on the date of any acquisition or disposal of an equity share by the company in any of the relevant areas.
• Acquisitions or disposals occurring on the very first day of the accounting period do not trigger a new reference period, and the final reference period ends on the last day of the accounting period.
• Each reference period is treated as belonging to the cluster area in question.