Commentary

B5.125 SPSE—accounting treatment

Business tax
Business tax | Commentary

B5.125 SPSE—accounting treatment

Business tax | Commentary

B5.125 SPSE—accounting treatment

As stated in B5.124 it is likely that the taxation treatment of BP will follow that of SP but HMRC guidance is not available on the matter. This article covers the rules as they are known for SPSE.

The time when the SPSE payments were recognised for income tax purposes is another important issue. Accounting practice suggests that government grants should not be recognised in a profit and loss account until the conditions attached to the grant have been complied with and there is reasonable assurance the grant will be received1.

In a Technical Release published in May 2005

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