Corporation Tax Act 2009 section 49

Items treated as receipts and expenses

Section 49 identifies the other parts of the Corporation Tax Acts that feed additional amounts into the calculation of trading profits, by treating certain items as receipts or expenses of the trade.

• Capital allowances under the Capital Allowances Act 2001 are treated as trading expenses, and balancing charges under the same Act are treated as trading receipts, overriding the normal rule that capital items are excluded from the profit calculation.
• Credits and debits arising on loan relationships held for trade purposes are brought into the trading profit computation as receipts and expenses respectively.
• Credits and debits on derivative contracts held for trade purposes are similarly treated as trading receipts and expenses.
• Credits and debits on intangible fixed assets held for the purposes of a trade, or for certain statutory concerns such as mines and transport undertakings, are likewise included as trading receipts and expenses.