Corporation Tax Act 2009 section 1265

Apportionment of profit share between partner's accounting periods

Section 1265 deals with how a corporate partner's share of a firm's profit or loss is split across the company's own accounting periods when these do not coincide with the firm's accounting period.

• Applies when a company has been allocated a share of a firm's profit or loss for the firm's accounting period
• Only relevant where the firm's accounting period does not match the company's accounting period
• Requires the company's share of the profit or loss to be apportioned between whichever of the company's accounting periods fall within the firm's accounting period
• Ensures the corporate partner's taxable profits or losses are reported in the correct periods for corporation tax purposes