Section 202 | Election, in guarantee case, to pay tax rather than make balancing payments

(1)If each of the pre-conditions (see section 201) is met, the disadvantaged person may make an election—

(a)to make no balancing payment within section 198 to the advantaged person in connection with section 147(3) or (5) applying because of section 153A in relation to the relevant borrowing in a chargeable period, but^F1F2

(b)instead, to undertake sole responsibility for discharging the advantaged person's liability to tax for that period so far as resulting from section 147(3) or (5) applying because of section 153A in relation to the relevant borrowing.^F1F2

(2)Section 203 contains provision about the making and effect of elections under this section.

(3)In this section, the following expressions have the meaning given by section 201—^F3

“the advantaged person”,

“the disadvantaged person”, and

“the relevant borrowing”.