Section 9B | Period for which an election under section 9A has effect ^F1

(1)An election under section 9A takes effect at the beginning of the day specified in the election as the day on which it takes effect (which must be later than the day on which the election is made).^F1F2

(2)Repealed^F3F1

(3)An election under section 9A may be revoked by notice of the revocation being given to an officer of Revenue and Customs before the election takes effect.^F1F4

(4)Subject to that, an election has effect until immediately before—^F1

(a)the day on which another election by X takes effect, or^F1

(b)the day on which a revocation event occurs,^F1

(whichever first occurs).

(5)A revocation event occurs in a period of account (other than a period to which subsection (6) applies) if, at any time during that period—^F1

(a)it is not the case that a significant proportion of X's assets and liabilities are denominated in the currency to which the election relates, and^F1

(b)it is not the case that the currency is the functional currency of another company which, with X, met the consolidation condition (within the meaning of section 9A(6)) at any time during the preceding period of account.^F1

(6)A revocation event occurs in the period of account in which X's first accounting period begins if—^F1F5

(a)Condition A and not Condition B is satisfied at the beginning of that accounting period, and^F1

(b)the condition in subsection (5)(a) is met at any time during the period of account but after the first accounting period begins.^F1

(6A)A revocation event also occurs in a period of account (whether or not a period to which subsection (6) applies) if, at any time during that period, X ceases to be a UK resident investment company.^F1F6

(7)Subsections (8) and (9) apply if a period of account of X (“the straddling period of account”) begins before, and ends on or after, the day on which—^F1

(a)an election under section 9A takes effect, or^F1F7

(b)a revocation event occurs.^F1

(8)It is to be assumed, for the purposes of this Chapter, that the straddling period of account consists of two separate periods of account—^F1

(a)the first beginning with the straddling period of account and ending immediately before that day, and^F1

(b)the second beginning with that day and ending with the straddling period of account,^F1

and X's profits and losses are to be computed accordingly for the purposes of corporation tax.

(9)For those purposes, it is to be assumed—^F1

(a)that X prepares its accounts for each of the two periods in the same currency, and otherwise on the same basis, as it prepares its accounts for the straddling period of account, and^F1

(b)that if the accounts for the straddling period of account, in accordance with generally accepted accounting practice, identify a currency as X's functional currency, the accounts for each of the two periods do likewise.^F1

(10)In this section references to “X” are to be construed in accordance with section 9A.^F1