Part 20U.K.General calculation rules

Chapter 2U.K.Other general rules

Miscellaneous profits and lossesU.K.

1306Losses calculated on same basis as miscellaneous incomeU.K.

(1)The same rules apply for corporation tax purposes in calculating a company's miscellaneous losses as apply in calculating corresponding miscellaneous income.

(2)This is subject to any express provision to the contrary.

(3)In this section—

(a)miscellaneous income” means profits or other income of the company charged to corporation tax under or by virtue of a provision to which section 834A of ICTA applies, and

(b)miscellaneous losses” means losses in transactions in respect of which the company is within the charge to corporation tax under or by virtue of such a provision.

(4)Provision corresponding to that made by this section is made by—

(a)section 47 (in relation to trades), and

(b)section 210 (in relation to property businesses).

1307Apportionment etc of miscellaneous profits and losses to accounting periodU.K.

(1)This section applies if—

(a)income is chargeable to corporation tax under or by virtue of any provision to which section 834A of ICTA applies, and

(b)any period for which accounts are drawn up (a “period of account”) does not coincide with an accounting period.

(2)For this purpose the reference to any provision to which section 834A of ICTA applies is to be read as if subsection (3) of that section were omitted (exclusion of Chapter 8 of Part 10 so far as relating to income which arises from a source outside the United Kingdom).

(3)Any of the following steps may be taken if they are necessary in order to arrive at the profits or losses of the accounting period—

(a)apportioning the profits or losses of a period of account to the parts of that period falling in different accounting periods, and

(b)adding the profits or losses of a period of account (or part of a period) to profits or losses of other periods of account (or parts).

(4)The steps must be taken by reference to the number of days in the periods concerned.