Taxation (International and Other Provisions) Act 2010 Schedule 9 paragraph 10

Changes in the law

Schedule 9 paragraph 10 provides a protective election for taxpayers where the rewriting of tax law into TIOPA 2010 has inadvertently changed the tax consequences of something that happened before the Act took effect.

• Where an action or event occurred before the Act's commencement (1 April 2010 for corporation tax, 6 April 2010 for income tax) and the rewrite has unintentionally altered its tax consequences, the taxpayer may elect to be treated as if the change had not been made.
• The election applies to any straddling period — that is, an accounting period or period of account that began before but ended on or after the relevant commencement date.
• Where more than one person is affected by the same action or event, every affected person must make a corresponding election; an election by only one party is ineffective on its own.
• The election must be made within two years of the end of the accounting period (for corporation tax) or by the first anniversary of the 31 January following the tax year in which the period of account ends (for income tax).