Section 435 | Group elections modifying the operation of sections 433 and 434 F1
From legislation.gov.uk
(1)Two or more companies which are members of the same worldwide group , and have each made an election under section 433, may jointly make an election under this section modifying the operation of sections 433 and 434 in relation to them for the times during which they remain members of that group.F1F2
(2)An election under this section—F1
(aa)must be made before the end of the earliest elected accounting period (see subsection (11));F1F3
(a)has effect from a date specified in the election , which may not be before the first day of the earliest elected accounting period;F1F4
(b)may be revoked jointly by the members of the group in relation to which the election has effect from a date specified in the revocation;F1
(c)ceases to have effect in relation to a company which gives a notice to an officer of Revenue and Customs, and to the companies in relation to which the election has effect, notifying them of its withdrawal from the election from a date specified in the notice.F1
(3)A date specified in a revocation or notice may not be before the date on which it is made or given.F1F5
(4)An election under this section which has effect at particular times (“relevant times”) in relation to particular companies (“elected companies”) modifies the operation of sections 433 and 434 as follows.F1
(5)If an elected company (“C”) has made an election under section 433 which has effect for an accounting period that includes relevant times, that section has effect as if, in determining whether anything is insignificant for the purposes of section 433(2), (4), (5) or (7), C also had the income and assets that the other elected companies had at those times.F1
(6)If—F1
(a)an elected company (“C”) has made an election under section 433 which has effect for an accounting period including relevant times, andF1
(b)C fails to meet one or more of the tests in subsection (1)(a) to (c) of that section in relation to that accounting period otherwise than as a result of this subsection,F1
all the other elected companies are also treated as failing to meeting those tests for so much of their accounting periods as consists of the relevant times in the accounting period of C.
(7)If, in a case where subsection (6) applies, the deemed failed period does not coincide with an accounting period of another elected company (“E”), the accounting period of E is treated for the purposes of this Part as if it consisted of separate accounting periods beginning and ending at such times as secure that none of the separate accounting periods fall partly within the deemed failed period.F1
(8)For this purpose “the deemed failed period” means the period consisting of the relevant times in the accounting period of C mentioned in subsection (6).F1
(9)All such apportionments as are necessary for the purposes of, or in consequence of, subsections (5) to (7) are to be made on a just and reasonable basis.F1
(10)If—F1
(a)elected companies have made elections under section 433 which have effect for accounting periods including relevant times, andF1
(b)more than half of those elected companies have each made an election under that section that has had effect for a period of at least 5 years,F1
section 434(3)(b) does not apply in relation to any of the elected companies.
(11)The “earliest elected accounting period” is the accounting period which—F6
(a)is the first elected accounting period of an elected company, andF6
(b)begins no later than the first elected accounting period of each other elected company.F6
(12)For the purposes of subsection (11), the “first elected accounting period” of an elected company is the first of the company’s accounting periods in relation to which the election is to have effect.F6
(13)If there is more than one earliest elected accounting period under subsection (11) and those periods (the “relevant periods”) do not all end on the same date, the “earliest elected accounting period” is the relevant period that ends no later than each of the other relevant periods.F6