Corporation Tax Act 2010 section 9B

Period for which an election under section 9A has effect

Section 9B sets out the rules governing when a designated currency election by a UK resident investment company takes effect, how long it lasts, and the circumstances in which it ceases to have effect (known as "revocation events").

• An election takes effect at the beginning of a specified future day chosen by the company and can be revoked by notifying HMRC before that day arrives.
• Once in effect, an election continues until the company makes a new election or a revocation event occurs — for example, where the company's assets and liabilities are no longer significantly denominated in the elected currency, it no longer meets the consolidation condition, or it ceases to be a UK resident investment company.
• Where an election taking effect or a revocation event falls part-way through a period of account, that period is split into two notional periods of account for corporation tax purposes, with profits and losses computed separately for each.
• For each notional period, the company is assumed to prepare its accounts in the same currency and on the same basis as for the original straddling period, and any functional currency identified under generally accepted accounting practice carries across to both notional periods.