Commentary

D1.303 Basis of assessment

Corporate tax
Corporate tax | Commentary

D1.303 Basis of assessment

Corporate tax | Commentary

D1.303 Basis of assessment

The provisions relating to the basis of assessment for income tax purposes (Part B4) do not apply for corporation tax; the basis in all cases is the income arising in the accounting period concerned except where it is necessary to apportion the income of a longer period1.

The basic rule is that all corporate income is computed on the full amount arising, whether or not it is remitted to the UK, and subject only to any deductions specifically authorised by the Corporation Tax Acts2. However, this rule is modified in the following situations:

  1.  

    •     Where the necessary conditions are satisfied (see E1.607), unremittable overseas income may be excluded from total profits of the accounting period in which it arises and is included in total profits of the accounting period in which it becomes available for remittance. The amount taken into account is the value of the income at the date on which it ceases to be unremittable3,

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