Taxation (International and Other Provisions) Act 2010 section 486

Election altering period of account deemed under section 485

Section 486 allows the ultimate parent of a worldwide group to elect to change the length of a deemed period of account that would otherwise be automatically assigned under section 485 during an accounts-free period.

• Where no actual consolidated financial statements exist and section 485 would automatically deem a period of account, the ultimate parent can elect to alter that deemed period by choosing a different end date.
• The chosen end date must fall within the accounts-free period and must not be more than 18 months after the start of the deemed period.
• The election must be made before the chosen end date and, once made, it cannot be revoked. If a further election is made for a later deemed period, its end date must be at least 3 years after the end date of the earlier elected period.
• After an elected period ends, the normal deemed period rules under section 485 resume for any remaining part of the accounts-free period.

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