(1)In computing for the purposes of corporation tax a company’s profits for any accounting period there shall be made all such deductions and additions as are required to give effect to the provisions of Parts I to VI and this Part which relate to allowances and charges in respect of capital expenditure; and subsection (2) below and section 145 have effect as respects allowances and charges which fall to be made under those provisions as they apply for the purposes of corporation tax.
(2)Allowances and charges which fall to be made for any accounting period in taxing a trade under the provisions of Parts I to VI and this Part as they apply for the purposes of corporation tax shall be given effect by treating the amount of any allowance as a trading expense of the trade in that period, and by treating the amount on which any such charge is to be made as a trading receipt of the trade in that period.
(3)Deductions allowable in taxing a trade under the provisions of Part VII as they apply for the purposes of corporation tax shall be given effect in accordance with subsections (1) and (2) above.
F1[(4)In the application of subsection (2) above to allowances and charges which fall to be made under the provisions of Part I, references to a trade shall be treated as including references to an undertaking treated by virtue of section 21(5A) as carried on by way of trade.]
Textual Amendments
F1S. 144(4) inserted(for any chargeable period or its basis period ending on or after 06.04.1991) by Finance Act 1991 (c. 31), s. 60(9)(10).
Modifications etc. (not altering text)
C1S. 144(2) restricted (27.7.1993 with effect as mentioned in s. 95(6) of the amending Act) by 1993 c. 34, ss. 94(5), 95(6)