Corporation Tax Act 2009 section 1260

Section 1259: supplementary

Section 1260 provides supplementary rules for calculating a firm's profits under section 1259, specifically addressing how losses from other periods and distributions made by the firm are treated.

• When calculating a firm's trade profits for a particular accounting period, losses from any other accounting period must be ignored
• Interest payments or other distributions made by the firm are not treated as "distributions" for tax purposes
• Because these payments are not classed as distributions, they are not caught by the rule that disallows deductions for dividends and distributions
• Capital allowances and balancing charges are already factored into the profit calculation and do not require separate treatment