18. Capital Goods Scheme

(1) For the purposes of Chapter 2 of Part 8 of the Act where a capital goods owner changes the end date of his or her accounting year during a subsequent interval of the adjustment period for a capital good, then—

(a) the duration of that subsequent interval shall be a period of 12 months from the start date of that subsequent interval, and

(b) in such circumstances, starting from and including the first day following the end of that subsequent interval, the remaining subsequent intervals in the adjustment period shall be consecutive periods of 12 months.

(2) Notwithstanding paragraph (1), where the change in the end date of the accounting year results in that accounting year ending—

(a) more than 12 months from the start date of the subsequent interval in which that change takes place, then the capital goods owner may extend the period of that subsequent interval to the end date of that accounting year, or

(b) less than 12 months from the start date of the subsequent interval in which that change takes place, then the capital goods owner may extend the period of that subsequent interval to the end date of the following accounting year.

(3) Where—

(a) a capital good is transferred in accordance with section 64(10)(c) of the Act during a subsequent interval of the adjustment period for that capital good, and

(b) the accounting year of the transferee differs from the accounting year of the transferor,

then—

(i) that subsequent interval shall be a period of 12 months from the start date of that subsequent interval in which the transfer takes place, and

(ii) in such circumstances, starting from and including the first day following the end of the subsequent interval during which the transfer takes place, the remaining subsequent intervals in the adjustment period shall be consecutive periods of 12 months.

(4) Notwithstanding paragraph (3), in a case where the accounting year of the transferee ends—

(a) more than 12 months from the start of the subsequent interval in which the transfer takes place, the transferee may extend that subsequent interval to the last day of that accounting year, or

(b) less than 12 months from the start of the subsequent interval in which the transfer takes place, the transferee may extend that subsequent interval to the last day of the following accounting year.