959AM Interpretation and miscellaneous (Chapter 7).

(1) In this Chapter—

“accounting period” means an accounting period of a company;

“corresponding corporation tax for the preceding accounting period”, in relation to an accounting period and a company, means an amount determined by the formula—

where—

T is the corporation tax payable for the preceding accounting period,

C is the number of days in the accounting period, and

P is the number of days in the preceding accounting period;

“corresponding income tax for the preceding accounting period”, in relation to an accounting period and a company, means an amount determined by the formula—

where—

I is the income tax payable under section 239 or 241 for the preceding accounting period,

C is the number of days in the accounting period, and

P is the number of days in the preceding accounting period;

“final instalment” shall be construed in accordance with section 959AS(1);

“final relevant instalment” shall be construed in accordance with section 959AS(5);

“initial instalment” shall be construed in accordance with section 959AS(1);

“initial relevant instalment” shall be construed in accordance with section 959AS(5);

“pre-preceding tax year”, in relation to income tax and a tax year, means the tax year next before the preceding tax year;

“relevant accounting period”, in relation to an accounting period, means, subject to subsection (2), an accounting period of a company other than a small company;

“relevant accounting standards” has the same meaning as in Schedule 17A;

“relevant company” means a company in respect of which profits or gains for the purposes of Case I or II of Schedule D are computed in accordance with relevant accounting standards, which are, or include, relevant accounting standards in relation to profits or gains or losses on financial assets or liabilities;

“relevant limit”, in relation to an accounting period, means, subject to subsection (3), €200,000;

“small company” shall be construed in accordance with subsection (4);

“tax payable for the initial period”, in relation to capital gains tax and a tax year, means the tax that would be payable by the chargeable person if the tax year ended on 30 November in the year instead of 31 December in that year;

“tax payable for the later period”, in relation to capital gains tax and a tax year, means the tax payable by the chargeable person for the tax year less the tax payable for the initial period in relation to that year.

(2) An accounting period is not a relevant accounting period where, but for this subsection, the final instalment of preliminary tax would, by reason of the dates on which the accounting period starts and ends, be due and payable in accordance with section 959AS(2) on or before the date on which the initial instalment would be due and payable in accordance with that section.

(3) Where the length of an accounting period is less than 12 months, the relevant limit in relation to the accounting period shall be proportionately reduced.

^[2]>

(3A) Where, apart from this subsection, C or, as the case may be, P in the definitions in subsection (1) of ‘corresponding corporation tax for the preceding accounting period’ and ‘corresponding income tax for the preceding accounting period’ would be 366 in the case where the accounting period concerned contains the date 29 February, then, in that case, C or, as the case may be, P in those definitions shall be deemed to be 365.

^<[2]

(4) A company is a small company in relation to an accounting period if the corresponding corporation tax for the preceding accounting period does not exceed the relevant limit in relation to the accounting period.

(5) References in this Chapter to the due date for the payment of an amount of preliminary tax shall, in the case where that tax is due for an accounting period, other than a relevant accounting period, of a company, be construed in accordance with section 959AR(1).

(6) References in this Chapter to the due date for the payment of the initial instalment, or the final instalment, of preliminary tax shall, in the case where that tax is due for a relevant accounting period, be construed in accordance with section 959AS(2).

(7) The provisions of this Chapter apply as respects chargeable persons only.

(8) The provisions of this Chapter as respects due dates for payment of tax apply subject to sections 579(4)(b) and 981.