Corporation Tax Act 2009 section 455

Disposals for consideration not fully recognised by accounting practice: disposals before 16 May 2008

Section 455 provides a transitional rule limiting the application of the provision dealing with disposals where the consideration is not fully recognised by accounting practice, so that it does not apply to disposals made before 16 May 2008.

• Section 455 addresses situations where the consideration received on a disposal of a loan relationship is not fully reflected in the company's accounts under normal accounting practice.
• This transitional provision ensures that section 455 only applies to disposals occurring on or after 16 May 2008.
• Any disposal of a loan relationship that took place before 16 May 2008 is excluded from the scope of section 455, even if the consideration was not fully recognised in the accounts.
• Companies should therefore apply the rules that were in force at the time of the disposal for any transactions completed before that date.