Annex 1: Minor changes in the law made by the Act: Change 49: Valuation of trading stock: adopt the normal self-assessment time limit for an election by connected persons: section 178
This change adopts the normal self-assessment time limit of 22 months for an election by connected persons.
This Act expresses time limits consistently. Where possible, the time limit for an election is the first anniversary of the “normal self-assessment filing date” (defined in section 878 as 31 January following the relevant tax year). The time limit for the election in section 100(1C) of ICTA was not changed to take account of the introduction of Self Assessment. So in that section the time limit for income tax is two years from the end of the tax year of cessation. This is inconsistent with most other time limits for income tax.
This change has no implications for the amount of tax paid, who pays it or when. It affects (in principle and in practice) only administrative matters.