NOTE BY INLAND REVENUE
DRAFT AMENDMENTS TO CLAUSE 6
Clause 6, page 4, line 27, after
'account' insert '(see subsections (2) to (6))'.
Clause 6, page 4, line 28, at
end insert '(see section 12 of ICTA)'.
The draft amendments are different from Lord
Brightman's suggested amendment.
Lord Brightman's amendment would insert a new
subsection (2A) after subsection (2) of clause 6. But the reader
might feel that the new subsection (2A) interrupts the flow of
the rules about "period of account" (which are contained
in subsections (2) to (6)).
An alternative to the draft amendments would
be to insert Lord Brightman's suggested subsection at the end
of the clause. But this might not be as helpful to the reader
who is puzzled about the difference between "period of account"
and "accounting period".
These amendments would probably be helpful to
the reader whose first encounter with tax legislation is with
the Capital Allowances Bill.
Those who are interested in obtaining capital
allowances for corporation tax purposes are likely to be aware
of section 12 of ICTA and the fact that it applies generally in
legislation about corporation tax (as a result of section 834(1)
of ICTA). This is on the basis that they will probably have already
investigated general rules about liability to tax before investigating
rules about allowances. The notes which accompany corporation
tax returns include a detailed explanation of the meaning of "accounting
Clause 6 and the reference to "accounting
period" were discussed in some detail by the Tax Law Rewrite
Project's Consultative Committee. The clause reflects the outcome
of that discussion.
An electronic search for accounting period"
in an annotated collection of statutes about direct taxation produced
2,316 "hits". Many of these "hits" are in
the annotations. But this gives a very rough indication of the
frequency of use of the phrase.
29 January 2001