Corporation Tax Act 2010 section 931

Time apportionment where periods of account do not coincide

Section 931 deals with how to calculate the lessor's accountancy rental earnings when the lessor's accounting period does not match the accounting period of a connected person or the period covered by the group's consolidated accounts.

• Where a lessor's accounting period differs from that of a connected person, amounts must be apportioned across the connected person's accounting periods as necessary.
• Where a lessor's accounting period differs from the period covered by consolidated group accounts, amounts must similarly be apportioned across the relevant group accounting periods.
• All apportionments must be made on a time basis, proportional to the number of days in each period that fall within the lessor's own accounting period.
• This ensures that the correct measure of accountancy rental earnings is attributed to the lessor's accounting period, even when the underlying figures are drawn from accounts prepared for different periods.