Income and Corporation Taxes Act 1988

7 (1) Subject to paragraph 8 below, the apportionment required by section 768B(4)(c) shall be made—

[F1 (a) in the case of the sums mentioned in paragraph 6(a) above, by apportioning to each accounting period the amounts that would fall to be brought into account in that period as such sums, if it were a period of account for which accounts were drawn up in accordance with generally accepted accounting practice;

(aa) in the case of the charges mentioned in paragraph 6(b) above, by reference to the time when the charge is due to be paid;]

(b) in the case of the excess mentioned in paragraph 6(c) above, [F2 or in the case of the non-trading [F3 deficit] mentioned in paragraph 6(dc) above,] by apportioning the whole amount of the excess [F4 or, as the case may be, of the deficit] to the first part of the accounting period being divided;

(c) in the case of the amounts mentioned in paragraph 6(d) [F5 , (da)] and (e) above, by reference to the respective lengths of the parts of the accounting period being divided;

[F6 (d) in the case of any such debit as—

(i) is mentioned in paragraph 6(db) above,

(ii) falls to be brought into account for the purposes of [F7 Part 5 of CTA 2009] in accordance with an [F8 amortised cost] basis of accounting, F9 . . .

(iii) so falls to be brought into account otherwise than on the assumption, specified in [F10 section 373 of] to that Act, that the interest to which it relates does not accrue until it is paid [F11 , and

(iv) so falls to be brought into account without any adjustment under [F12 sections 406 to 412 of that Act] (debit relating to amount of discount referable to the relevant accounting period to be brought into account instead for the accounting period in which the security is redeemed),]

by reference to the time of accrual of the amount to which the debit relates;

(e) in the case of any such debit as—

(i) is mentioned in paragraph 6(db) above,

(ii) falls to be brought into account for the purposes of [F13 Part 5 of CTA 2009] in accordance with an [F8 amortised cost] basis of accounting, F14 . . . [F15 and

(iii) so falls to be brought into account—

• — on the assumption mentioned in paragraph (d)(iii) above, or

• — with such an adjustment as is mentioned in paragraph (d)(iv) above,]

by apportioning the whole amount of the debit to the first part of the accounting period being divided;

(f) in the case of any such debit as is mentioned in paragraph 6(dd) above, by apportioning the whole amount of the debit to the first part of the accounting period being divided.]

[F16 (g) in the case of any such credit or debit as is mentioned in paragraph 6(de), by apportioning to each accounting period the credits or debits that would fall to be brought into account in that period if it were a period of account for which accounts were drawn up in accordance with generally accepted accounting practice;

(h) in the case of any such loss as is mentioned in paragraph 6(df) above, by apportioning the whole amount of the loss to the first part of the accounting period being divided.]

(2) F17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Sch. 28A para. 7(1)(a)(aa) substituted for para. 7(1)(a) (28.9.2004 with effect in accordance with art. 1(2) of the amending S.I.) by The Finance Act 2004, Sections 38 to 40 and 45 and Schedule 6 (Consequential Amendment of Enactments) Order 2004 (S.I. 2004/2310), art. 2, Sch. para. 39(5)

F2 Words in Sch. 28A para. 7(1)(b) inserted (with effect in accordance with s. 105(1) of the amending Act) by Finance Act 1996 (c. 8), Sch. 14 para. 54(3)(a) (with Sch. 15)

F3 Words in Sch. 28A para. 7(1)(b) substituted (retrospectively) by Finance Act 1998 (c. 36), s. 82(3)(d)(4)

F4 Words in Sch. 28A para. 7(1)(b) inserted (with effect in accordance with Sch. 7 para. 3(9) of the amending Act) by Finance (No. 2) Act 2005 (c. 22), Sch. 7 para. 3(4)

F5 Words in Sch. 28A para. 7(1)(c) inserted (with effect in accordance with s. 105(1) of the amending Act) by Finance Act 1996 (c. 8), Sch. 14 para. 54(3)(b) (with Sch. 15)

F6 Sch. 28A para. 7(1)(d)-(f) inserted (with effect in accordance with s. 105(1) of the amending Act) by Finance Act 1996 (c. 8), Sch. 14 para. 54(3)(c) (with Sch. 15)

F7 Words in Sch. 28A para. 7(1)(d)(ii) substituted (1.4.2009 with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 290(4)(a) (with Sch. 2 Pts. 1, 2)

F8 Words in Sch. 28A para. 7(1)(d)(ii)(e)(ii) substituted (with effect in accordance with s. 52(3) of the amending Act (as amended (retrospectively) by 2005 c. 7, Sch. 4 para. 50, Sch. 11 Pt. 2(7)) by Finance Act 2004 (c. 12), Sch. 10 para. 45

F9 Word preceding Sch. 28A para. 7(1)(d)(iii) repealed (with effect in accordance with s. 82(2) of the repealing Act) by Finance Act 2002 (c. 23), Sch. 25 para. 58(3), Sch. 40 Pt. 3(12), Note

F10 Words in Sch. 28A para. 7(1)(d)(iii) substituted (1.4.2009 with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 290(4)(b) (with Sch. 2 Pts. 1, 2)

F11 Sch. 28A para. 7(1)(d)(iv) and preceding word inserted (with effect in accordance with s. 82(2) of the amending Act) by Finance Act 2002 (c. 23), Sch. 25 para. 58(3)

F12 Words in Sch. 28A para. 7(1)(d)(iv) substituted (1.4.2009 with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 290(4)(c) (with Sch. 2 Pts. 1, 2)

F13 Words in Sch. 28A para. 7(1)(e)(ii) substituted (1.4.2009 with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 290(4)(d) (with Sch. 2 Pts. 1, 2)

F14 Word preceding Sch. 28A para. 7(1)(e)(iii) repealed (with effect in accordance with s. 82(2) of the repealing Act) by Finance Act 2002 (c. 23), Sch. 25 para. 58(4), Sch. 40 Pt. 3(12), Note

F15 Sch. 28A para. 7(1)(e)(iii) and preceding word substituted for para. 7(1)(e)(iii)(iv) (28.9.2004 with effect in accordance with art. 1(2) of the amending S.I.) by The Finance Act 2004, Sections 38 to 40 and 45 and Schedule 6 (Consequential Amendment of Enactments) Order 2004 (S.I. 2004/2310), art. 2, Sch. para. 39(6)

F16 Sch. 28A para. 7(1)(g)(h) inserted (24.7.2002) by Finance Act 2002 (c. 23), Sch. 30 para. 4(5)

F17 Sch. 28A para. 7(2) repealed (with effect in accordance with s. 82(2) of the repealing Act) by Finance Act 2002 (c. 23), Sch. 25 para. 58(5), Sch. 40 Pt. 3(12), Note