Corporation Tax Act 2009 section 1307

Apportionment etc. of miscellaneous profits and losses to accounting period

Section 1307 deals with how miscellaneous profits and losses chargeable to corporation tax are apportioned when a company's period of account does not match its accounting period.

• Where a company's period of account does not coincide with its accounting period, profits or losses must be apportioned to arrive at the correct figures for each accounting period
• Apportionment is done by splitting profits or losses of a period of account across the parts falling in different accounting periods
• Profits or losses from different periods of account (or parts of them) may also be aggregated where necessary, for example during a company liquidation
• All apportionments must be calculated on a strict time basis using the number of days in each relevant period