Corporation Tax Act 2009 section 52

Apportionment etc. of profits and losses to accounting period

Section 52 explains how to split trading profits or losses across accounting periods when a company's period of account does not line up with its accounting periods.

• The section applies whenever a trade's period of account does not coincide with an accounting period.
• Profits or losses may be apportioned between the parts of a period of account that fall into different accounting periods.
• Apportioned amounts may be combined with profits or losses from other periods of account (or parts of periods) to arrive at the correct figure for each accounting period.
• All apportionments must be calculated strictly on the basis of the number of days in each relevant period — no other measure of time is permitted.