Commentary on Sections Glossary Structure of Part 4 Section 382: Requirements as to elections
1313.This section is based on section 129(2), (4) and (5) of CAA 1990. It sets out how elections for balancing events must be made. In general this is by the old and new owners jointly.
1314.Subsections (2) and (3) prevent an election from being made if the sole or main benefit of the transaction(s) which gave rise to the balancing event is obtaining an allowance or an increased allowance.
1315.Subsection (4) provides for an election to be made by the person entitled to the relevant interest immediately before the event if there is no new owner.
1316.Subsection (5) prevents people from making an election if they are not “within the charge to tax” without the additional words “within the charge to tax in the United Kingdom” which are in section 129(5) of CAA 1990. The words are not necessary. Omitting them brings this section into line with the wording used elsewhere in CAA 1990 and ICTA. See Note 42 in Annex 2.
1317.Subsections (6) and (7) set the time limits for making an election for both income tax and corporation tax purposes. These are the normal self assessment time limits.