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Legislation
Corporation Tax Act 2009

Crossheading Adjustment on change of basis

  • Section 180 Application of Chapter
  • Section 181 Giving effect to positive and negative adjustments
  • Section 182 Calculation of the adjustment
  1. Adjustment on change of basis
  2. Giving effect to positive and negative adjustments

Section 181 | Giving effect to positive and negative adjustments

From legislation.gov.uk

(1)An amount by way of adjustment must be calculated in accordance with section 182.

(2)If the amount produced by the calculation is positive—

(a)the amount is brought into account as a receipt in calculating the profits of the trade, and

(b)the receipt is treated as arising on the first day of the first period of account for which the new basis is adopted.

(3)If the amount produced by the calculation is negative—

(a)a deduction is allowed for the amount as an expense of the trade in calculating the profits of the trade, and

(b)the expense is treated as arising on the first day of the first period of account for which the new basis is adopted.

(4)This section is subject to—

(a)section 183 (no adjustment for certain expenses previously brought into account),

(b)section 184 (cases where adjustment not required until assets realised or written off), and

(c)section 185 (change from realisation basis to mark to market).

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