CTM08800 | Corporation Tax: change of ownership: companies with investment business: apportionment of ‘amounts in issue’
From HM Revenue & Customs · Company Taxation Manual
and S686
The amounts in issue for which an apportionment is required under () are listed at . The amounts, and the manner of apportionment, are as follows:
| Row | Amount of apportionment | Method of apportionment |
|---|---|---|
| 1 | The amount for the true accounting period (AP) of any adjusted non-trading profits from the company's loan relationships (see ) | Apportion on a time basis according to the respective lengths of the two notional APs |
| 2 | The amount for the true AP of any adjusted non-trading deficit from the company's loan relationships (see S686 (3)) | Apportion on a time basis according to the respective lengths of the two notional APs |
| 3 | The amount of any non-trading debit that falls to be brought into account for the true AP for the purposes of (loan relationships) in respect of any debtor relationship of the company | (1) If condition A in S686 (4) is met, apportion by reference to the time of accrual of the amount to which the debit relates(2) If condition B in S686 (5) is met, apportion to the first notional AP |
| 4 | The amount of any non-trading deficit carried forward to the true AP under , S463G (6) or S463H (4) | Apportion the whole of the amount to the first notional AP |
| 5 | The amount of any non-trading credits or debits in respect of intangible fixed assets that fall to be brought into account for the true AP under (non-trading gains and losses), but excluding any amount within 6 below | Apportion to each notional AP 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 (GAAP). |
| 6 | The amount of any non-trading loss on intangible fixed assets carried forward to the true AP under and treated under that section as if it were a non-trading loss on intangible fixed assets for that period | Apportion the whole of the amount to the first notional AP |
| 7 | The amount of any expenses of management referable to the true AP within the meaning of (companies with investment business) - but see ) | Apportion to each notional accounting period the amounts that would fall to be brought into account in that period as a if it were a period of account for which accounts were drawn up in accordance with generally accepted accounting practice (GAAP) |
| 8 | The amount of any excess carried forward under (expenses of management carried forward) to the true AP | Apportion the whole of the amount to the first notional AP |
| 9 | The amount of any allowances falling to be made for the true AP as a result of which would (but for this provision) be added to the expenses of management for the period under (excess capital allowances) | Apportion the amount on a time basis according to the respective lengths of the two notional APs |
| 10 | Any other amounts by reference to which the profits or losses of the true AP would be calculated | Apportion the amount on a time basis according to the respective lengths of the two notional APs |
If any method of apportionment would work unjustly or unreasonably, any other method that is just and reasonable may be used