Corporation Tax Act 2010 section 639

Election to carry back

Section 639 allows a company (or its liquidator) to elect that a winding up receipt from a deposit-taking trade be treated as received on the date the trade permanently ceased, rather than the date it was actually received.

• The section applies where a winding up receipt from the deposit-taking trade arises in an accounting period beginning no later than 6 years after the company permanently ceased the trade.
• The company or its liquidator may elect that corporation tax on the receipt is charged as if the receipt was received on the date the trade ceased.
• The election must be made within 2 years immediately after the end of the accounting period in which the receipt was actually received.
• Once an election is made, an assessment to corporation tax must be issued accordingly, overriding any other provision in the Corporation Tax Acts.