Commentary

D7.432 Allocating income, losses and expenses

Corporate tax
Corporate tax | Commentary

D7.432 Allocating income, losses and expenses

Corporate tax | Commentary

D7.432 Allocating income, losses and expenses

Companies are required to use an acceptable commercial method in order to determine what part of any income, loss or debit and expense is referable to BLAGAB1.

While it is clear what is meant by income and expenses, the phrase 'loss or debit' has a particular meaning:

  1.  

    •     losses arising on any separate UK or overseas property business

  2.  

    •     debits in respect of any loan relationships or derivative contracts

  3.  

    •     debits arising on intangible fixed assets, and

  4.  

    •     losses on miscellaneous transactions2

A method will be acceptable if it can reasonably be regarded as providing a

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