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F(No2)A17/S19

In most cases, the TAAR has effect from 1 April 2017. This means that it can counter tax advantages that arise on or after that date.

It does not matter when the arrangements were made. »Ê¹ÚÌåÓýapp TAAR can apply to arrangements entered into before the commencement date if the purpose or one of the main purposes is to ensure that a tax advantage will arise and as, a matter of fact, the advantage does arise after that date.

Where the tax advantage would result from a deduction or increased deduction under one of several provisions, there is a different commencement date of 12 July 2017. »Ê¹ÚÌåÓýapp provisions for which this different commencement date applies are:

• CTA09/S463H (non-trading deficits from loan relationships: where an investment business becomes small or negligible)
• CTA10/S62(3) (losses of a UK property business),
• CTA10/S303B, 303C and 303D (non-decommissioning losses of oil and gas ring-fence trades),
• FA12/S124A, S124C (excess carried-forward BLAGAB trade losses).

Straddling periods

F(No2)A17/S19(11) provides for a situation where the tax advantage in question relates to a period that begins before and ends after the commencement date.

»Ê¹ÚÌåÓýapp legislation divides the accounting period into two parts, treated as two separate periods:

• »Ê¹ÚÌåÓýapp part of the accounting period that falls before the commencement date, and
• »Ê¹ÚÌåÓýapp part that falls on or after the commencement date.

This allows amounts to be apportioned between the two periods. »Ê¹ÚÌåÓýapp TAAR has effect only for amounts apportioned to the second period.

Apportionments should be made on a time basis according to the respective lengths of the periods (CTA10/S1172) unless this produces an unjust or unreasonable result. In that case, another method should be used to apportion amounts on a just and reasonable basis.