Introduction Equity holders Overview Section 141: Sections 139 and 140:supplementary
542.This section sets out three rules about relevant prior claims. It is based on section 403A of ICTA.
543.Subsection (1) explains what happens if two or more claims are made at the same time. They are treated as made in whatever order the company or companies choose, by making an election.
544.The section does not specify that the election is to be made “by notice to any officer of the Board” (section 403A(7)(a) of ICTA). The rules in Schedule 18 to FA 1998 apply for the purposes of this Act. Either the election is to be made in a company’s return or it is to be made to “an officer of the Board” (paragraph 2(1) of Schedule 1A to TMA, applied by paragraph 59 of Schedule 18 to FA 1998).
545.If no such election is made, the choice is made by HMRC.
546.Subsection (2) introduces the second rule, about measuring a relevant prior claim. The amount of such a claim is determined when it is made. So it takes account of any earlier claims; and takes no account of any later claims.
547.The section does not rewrite the rule in section 403A(6) of ICTA about a claim becoming final. See Change 24 in Annex 1.
548.Subsection (3) sets out the third rule. It substitutes a “just and reasonable” apportionment for any time-apportionment prescribed by section 139 or 140.