Corporation Tax Act 2009 section 48

Receipts and expenses

Section 48 clarifies the meaning of "receipts" and "expenses" when calculating the profits of a trade for corporation tax purposes.

• In the Corporation Tax Acts, "receipts" and "expenses" refer to any items brought into account as credits or debits when calculating trading profits
• The terms do not require that an amount has actually been received or paid — they are accounting entries, not cash movements
• This broad definition aligns the tax legislation with accruals-based accounting, where income and costs are recognised when earned or incurred rather than when cash changes hands
• The section is subject to any express provision elsewhere in the legislation that states otherwise