Commentary

B2.468 Reserves and provisions

Business tax
Business tax | Commentary

B2.468 Reserves and provisions

Business tax | Commentary

B2.468 Reserves and provisions

In some circumstances, a deduction may be made for a liability which has not yet accrued but for which there is a reasonable expectation that it will arise in the future, known as a provision or reserve. The tax treatment of such a deduction will depend on the facts of a particular case, the nature of the business concerned and, particularly, the degree of contingency.

Where the provision relates to specific expenditure which has already accrued and the amount of the provision can be calculated with a reasonable degree of accuracy, it is known as a 'specific

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