Section 18F | Effect of election ^F1

(1)An election made by a company under section 18A—

(a)(subject to subsections (6) to (8) ) is irrevocable, and^F2

(b)applies to all accounting periods of the company beginning on or after the relevant day.

(2)The relevant day”, in relation to an election made by a UK resident company, means—^F3

(a)the day on which, at the time of the election, the company's accounting period following that in which the election is made is expected to begin, or^F3

(b)if the election is made before the company's first accounting period, the day on which that accounting period begins.^F3

(2A)“The relevant day”, in relation to an election made by a non-UK resident company, means the day on which the company becomes UK resident.^F3

(3)Subsection (4) applies if an accounting period of the company (“the straddling period”) begins before, and ends on or after, the relevant day.

(4)It is to be assumed, for the purposes of the Corporation Tax Acts, that the straddling period consists of two separate accounting periods—

(a)the first beginning with the straddling period and ending immediately before the relevant day, and

(b)the second beginning with that day and ending with the straddling period.

(5)Where for those purposes it is necessary to apportion the profits and losses for the straddling period to different parts of the period, that apportionment is to be made on a just and reasonable basis.

(6)An election can be revoked by the company which made it at any time before the relevant day.^F4

(7)An election made by a UK resident company is revoked if the company ceases to be UK resident.^F5

(8)An election made by a non-UK resident company is revoked if, having become UK resident, the company ceases to be UK resident.^F5