An election may only be withdrawn by amending the return (or
further amending a return) for the period in which the election is
made.
In practice this means that the amended return must be based
on the profits computed on the basis that an election had not been
made.
Exceptionally, withdrawing an election will require amending
the return for more than one year.
The time limit for withdrawing an election is the same as the
time limit for making an election. That is, if an election is to be
withdrawn it must be withdrawn within the permitted time BLM24040.
Example
A company submits its return for the years to 31 December
2006 on 30 June 2007 and its return for the year to 31 December
2007 on 30 June 2008. The return for 2006 contains an election with
an effective date of 1 April 2006. The profits for both years are
computed accordingly.
On 30 September 2007 the company submits an amended return
for the year to 31 December 2006. The amended return is made on the
basis that the election has been withdrawn. The company’s
2007 return is now incorrect and so the company also submits an
amended return for that year.
