Taxation (International and Other Provisions) Act 2010 section 203

Elections under section 200 or 202

Section 203 explains the procedural rules for making elections under sections 200 and 202, which allow a disadvantaged person to pay tax instead of making balancing payments, and sets out the consequences of such elections.

• The election must be included in the disadvantaged person's company tax return for the period in which the relevant security was issued, and once made it cannot be revoked.
• The election takes effect for the chargeable period in which the relevant security is issued and all subsequent chargeable periods, applying to each of the affected persons.
• HMRC may refuse to accept the election by issuing a notice, but only after they have opened a formal enquiry into the company tax return containing the election.
• Where the election is in effect, the relevant tax becomes recoverable from the disadvantaged person as if it were corporation tax owed by them, and ceases to be recoverable from the advantaged person.