Corporation Tax Act 2010 section 384

Amount of income and expense

Section 384 explains how the amounts of income and matching expense are calculated when a company has income and its related expense falling in different accounting periods under the loan relationship anti-avoidance rules.

• The amount of income to be recognised is calculated using the detailed rules set out in sections 399 to 407 of the Act.
• The matching expense amount is always equal to the income amount — they are the same figure.
• This ensures symmetry: whatever income is brought into account, an identical expense is also brought into account, albeit in a different period.
• This section acts as a signpost, directing users to the substantive calculation rules elsewhere in the Act rather than containing the calculation methodology itself.