Corporation Tax Act 2009 section 114

Chapters 3 to 5 of Part 13: expenditure incurred before 1 April 2002

Section 114 of Schedule 2 establishes that certain rules in Part 13 (Chapters 3 to 5) concerning expenditure do not apply where that expenditure was incurred before 1 April 2002.

• The rules in Chapters 3 to 5 of Part 13 only apply to expenditure incurred on or after 1 April 2002.
• Any expenditure incurred before 1 April 2002 is excluded from these chapters entirely.
• The rule that treats pre-trading expenses as if they were incurred on the first day of trading is specifically disregarded for the purpose of this cut-off date.
• This means the actual date the expenditure was incurred determines whether the 1 April 2002 threshold is met, not any deemed date arising from pre-trading expense rules.