Part 2Trading income
Chapter 4Trade profits: rules restricting deductions
Unpaid remuneration
37Unpaid remuneration: supplementary
1
For the purposes of section 36 an amount charged in the accounts in respect of employees' remuneration includes an amount for which provision is made in the accounts with a view to its becoming employees' remuneration.
2
For the purposes of section 36 it does not matter whether an amount is charged for—
a
particular employments, or
b
employments generally.
3
If the profits of the trade are calculated before the end of the 9 month period mentioned in section 36(2)—
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, nothing in this subsection prevents the calculation being revised and any tax return being amended accordingly.
4
For the purposes of this section and section 36 remuneration is paid when it—
a
is treated as received by an employee for the purposes of ITEPA 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.
5
In this section and section 36—
“employee” includes an office-holder and “employment” therefore includes an office, and
“remuneration” means an amount which is or is treated as earnings for the purposes of ITEPA 2003.