Corporation Tax Act 2009 section 1231

Absence of accounts

Section 1231 explains how the claw-back of management expenses relief under section 1229 operates when a company has an accounting period for which no actual accounts have been prepared.

• Where a company's accounting period does not coincide with or fall within any period of account, section 1229 applies as though a period of account existed matching that accounting period
• Profits and losses for this deemed period of account are calculated as if amounts had been recognised in accordance with UK generally accepted accounting practice (UK GAAP)
• UK GAAP is the applicable standard in this situation, even where alternative international accounting standards might otherwise be relevant, because the company has not in fact prepared any accounts
• Any credits and debits deemed to arise under this section are also recognised for the purposes of the car hire restriction rules in section 1251(3)(b)