Corporation Tax Act 2009 section 1216CK

No account to be taken of amount if unpaid

Section 1216CK prevents unpaid costs from being included in a programme's cost calculations if they remain outstanding beyond a specified deadline after the end of the relevant accounting period.

• Costs that remain unpaid four months after the end of an accounting period cannot be included in the programme's costs for that period
• This rule acts as a safeguard to ensure only genuinely settled expenditure is recognised for tax relief purposes
• The provision does not override the separate rules in section 1216BD, which determine the point at which costs are treated as having been incurred
• The two rules work together: section 1216BD establishes when a cost arises, while section 1216CK disallows it if it is not actually paid within the four-month window