Taxation (International and Other Provisions) Act 2010 section 485

No actual financial statements: other cases

Section 485 provides a fallback rule for worldwide groups that have no financial statements at all — whether actual or deemed — for a period beginning on or after 1 April 2017, by treating IAS financial statements as drawn up for that period, split into 12-month chunks if necessary.

• An "accounts-free period" is any period from 1 April 2017 onwards during which a worldwide group exists but has no actual or deemed financial statements drawn up for any part of it.
• If the accounts-free period is 12 months or shorter, the group is treated as having IAS financial statements covering that entire period.
• If the accounts-free period exceeds 12 months, it is divided into consecutive 12-month segments (plus any shorter residual period at the end), with IAS financial statements deemed to exist for each segment.
• A period that forms part of a larger accounts-free period does not itself count as a separate accounts-free period, preventing overlapping deemed periods.