Income Tax Act 2007 section 614DA

Time apportionment where periods of account do not coincide

Section 614DA deals with how to apportion amounts on a time basis when the lessor's accounting period does not match the accounting period of a connected person or the period covered by consolidated group accounts.

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