Corporation Tax Act 2009 section 261

Adjustment on change of basis

Section 261 sets out the circumstances in which a tax adjustment may arise when a company carrying on a UK property business changes the basis on which it calculates profits for corporation tax purposes.

• An adjustment under section 262 is triggered when a company changes the profit calculation basis for its UK property business from one period of account to the next
• The old basis must have been in accordance with the law or accepted practice applicable to the earlier period, and the new basis must accord with the law and practice for the later period
• "Accepted practice" means the generally recognised approach for calculating UK property business profits for corporation tax purposes in cases of that type
• The rules for determining what constitutes a change of basis are the same as those used for trading income under section 180, but applied to a UK property business rather than a trade