Part II Income Tax, Corporation Tax and Capital Gains Tax
CHAPTER I General
Receipts basis etc.
43 F1Schedule D: computation
1
In calculating profits or gains of a trade to be charged under Schedule D for a period of account, no deduction is allowed for an amount charged in the accounts in respect of employees' remuneration, unless the remuneration is paid before the end of the period of 9 months immediately following the end of the period of account.
2
For the purposes of subsection (1) above an amount charged in the accounts in respect of employees' remuneration includes an amount F2for which provision is made in the accounts with a view to its becoming employees' remuneration.
3
Subsection (1) above applies whether the amount is in respect of particular employments or in respect of employments generally.
4
If the remuneration is paid after the end of the period of 9 months mentioned in subsection (1) above, any deduction allowed in respect of it is allowed for the period of account in which it is paid and not for any other period of account.
5
If the profits of the trade are calculated before the end of the period of 9 months mentioned in subsection (1) above—
a
it must be assumed, in making the calculation, that any remuneration which is unpaid when the calculation is made will not be paid before the end of that period, but
b
if the remuneration is subsequently paid before the end of that period, the calculation is adjusted if a claim to adjust it is made to an officer of the Board within 2 years beginning with the end of the period of account.
6
For the purposes of this section, remuneration is paid when it—
a
is treated as received by an employee for the purposes of the Income Tax (Earnings and Pensions) Act 2003 by section 18, 19, 31 or 32 of that Act (receipt of money and non-money earnings), or
b
would be so treated if it were not exempt income.
7
In this section—
“employee” includes an office-holder and “employment” correspondingly includes an office, and
“remuneration” means an amount which is or is treated as earnings for the purposes of the Income Tax (Earnings and Pensions) Act 2003.