Corporation Tax Act 2009 section 1218ZCL

No account to be taken of amount if unpaid

Section 1218ZCL requires that unpaid production costs for an exhibition are excluded from the cost calculation if they remain unpaid four months after the end of the relevant period of account.

• When calculating exhibition production costs at the end of a period of account, any amounts still unpaid four months after that period ends must be excluded
• This rule ensures that only costs which have actually been settled within the four-month window are recognised for tax purposes
• The exclusion applies specifically to the period of account in which the costs were incurred — it does not necessarily mean the costs are lost forever
• This provision operates alongside the separate rules on when costs are treated as incurred, which continue to apply independently