Commentary on Sections Part 2: Charge to corporation tax: basic provisions Overview Section 9: Beginning of accounting period
63.This section identifies when an accounting period begins. It is based on section 12 and section 342A of ICTA.
64.Subsection (1)(a) deals with the case in which a company comes within the charge to corporation tax. Subsection (1)(a) states an important general rule. This Act does not reproduce the two examples given in section 12(2)(a) of ICTA of circumstances in which this general rule would apply (becoming UK resident, acquiring a source of income). The examples add nothing useful and might obscure the general rule.
65.Subsection (1)(b) deals with the usual case of a company that is already within the charge to corporation tax so that a new accounting period begins when the previous accounting period ends.
66.Subsection (4) disapplies this section in the case of a company being wound up. Section 12, which makes special provision about companies being wound up, applies instead.
67.Subsection (6) is a general signpost that, in certain circumstances, the rules in this section are modified by rules in other provisions of the Corporation Tax Acts that deal with particular cases. The implications for accounting periods will be clear when considering the cases in question (for example, paragraph 3 of Schedule 10 to FA 2006 (sale of lessor companies) and paragraph 52 of Schedule 22 to FA 2000 (tonnage tax)).