Income Tax (Trading and Other Income) Act 2005 Schedule 2 paragraph 11

Changes in the law

Schedule 2 paragraph 11 provides a protective election where the introduction of ITTOIA 2005 inadvertently changed the tax consequences of events or actions that took place before the Act came into force.

• Where something happened before 6 April 2005 and the new Act has unintentionally altered its tax treatment for a straddling period, the affected person may elect to preserve the original tax outcome.
• The "relevant period" means any period of account (for income tax) or accounting period (for corporation tax) that began before 6 April 2005 and ended on or after that date.
• Where the same event affects two or more persons, an election by one is ineffective unless every other affected person also makes a corresponding election.
• For income tax the election must be made by the first anniversary of the normal self-assessment filing date for the tax year in which the period of account ends; for corporation tax it must be made within two years after the end of the accounting period.