Corporation Tax Act 2009 section 49A

Money's worth

Section 49A ensures that when a company receives something of value other than cash (known as "money's worth") in the course of its trade, the value of that benefit is treated as a taxable receipt when calculating trading profits.

• Where a trade transaction involves receiving non-cash benefits (money's worth), the value of those benefits must be brought into account as a trading receipt.
• This rule applies only if the amount would have been a receipt had the transaction involved actual money.
• The rule acts as a safety net — it only applies where an equivalent amount is not already being recognised as a receipt under another provision.
• Where another specific provision in the same Part of the Act expressly deals with how to account for money's worth as a receipt, that other provision takes priority over this general rule.