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Legislation
Corporation Tax Act 2009

Crossheading Spreading of charge to tax

  • Section 914 UK resident companies: proceeds of sale not received in instalments
  • Section 915 UK resident companies: proceeds of sale received in instalments
  • Section 916 Non-UK resident companies: proceeds of sale not received in instalments
  • Section 917 Non-UK resident companies: proceeds of sale received in instalments
  • Section 918 Winding up of a body corporate
  1. Spreading of charge to tax
  2. UK resident companies: proceeds of sale not received in instalments

Section 914 | UK resident companies: proceeds of sale not received in instalments

From legislation.gov.uk

(1)This section applies if a company liable for tax under section 912—

(a)is UK resident, and

(b)does not receive the proceeds of sale in instalments.

(2)The appropriate fraction of the amount chargeable is taxed—

(a)in the accounting period in which the company receives the proceeds of sale (“the period of receipt”), and

(b)in successive accounting periods, until the expiry of the 6-year period beginning at the start of the period of receipt.

(3)The appropriate fraction is the same fraction of the amount chargeable as the accounting period in question is of 6 years (or, in the last period, such smaller fraction of that amount as has not already been taxed).

(4)The company may elect that the whole of the amount chargeable is to be taxed instead in the period of receipt.

(5)An election under subsection (4) must be made within the two-year period beginning at the end of the period of receipt.

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