Income Tax (Earnings and Pensions) Act 2003 section 90–92

Consequences for corporation tax

Sections 90 to 92 deal with how the transition to the new Act affected corporation tax for companies whose accounting periods straddled 6th April 2003, providing an election to preserve the old income tax rules and setting out how certain provisions applied during that changeover.

• Where a company's accounting period began before and ended on or after 6th April 2003, and the new Act changed the income tax rules relevant to that period, the company could elect to be treated as though the old rules still applied for that accounting period.
• The election had to be notified to an officer of Revenue and Customs within two years of the end of the accounting period in question.
• For corporation tax purposes relating to a straddling accounting period, references in the transitional schedule to the tax year 2003–04 were read as references to that accounting period, and references to 6th April 2003 were read as references to the first day of that accounting period.
• Certain specific provisions — notably amendments to share scheme references in Schedule 6 and repeals of employee share option plan corporation tax deduction rules in Schedule 8 — did not take effect for corporation tax purposes for any part of an accounting period falling before 6th April 2003.