Section 309 | Accounting periods

(1)In this Chapter, in the case of a qualifying company—

“the commencement period” means the accounting period in which the company sets up and commences its ring fence trade,

“post-commencement period” means an accounting period beginning on or after 1 January 2006—

(a)which is the commencement period, or

(b)which ends after the commencement period, and

“pre-commencement period” means an accounting period—

(a)beginning on or after 1 January 2006, and

(b)ending before the commencement period.

(2)For the purposes of this Chapter, a company not within the charge to corporation tax which incurs any expenditure is to be treated as having such accounting periods as it would have if—

(a)it carried on a trade consisting of the activities in respect of which the expenditure is incurred, and

(b)it had started to carry on that trade when it started to carry on the activities in the course of which the expenditure is incurred.

(3)In the case of an accounting period (a “straddling period”) of a qualifying company beginning before 1 January 2006 and ending on or after that date—

(a)so much of the straddling period as falls before 1 January 2006, and

(b)so much of the straddling period as falls on or after that date,

are treated as separate accounting periods for the purposes of this Chapter.

(4)But special provision is made elsewhere in this Chapter—

(a)in relation to straddling periods (see sections 311, 324 and 327(4) to (7)), and

(b)in relation to accounting periods which begin before, but end on or after, 5 December 2013 (see sections 311(1C), 318A and 328A).