Section 180 — Corporation Tax Act 2009: Application of Chapter

Application of Chapter 180 1 This Chapter applies if—

a a company carrying on a trade changes, from one period of account to the next, the basis on which profits of the trade are calculated for corporation tax purposes, b the old basis accorded with the law or practice applicable in relation to the period of account before the change, and c the new basis accords with the law and practice applicable in relation to the period of account after the change.

2 The practice applicable in any case means the accepted practice in cases of that description as to how profits of a trade should be calculated for corporation tax purposes.

3 A company changes the basis on which profits of a trade are calculated for corporation tax purposes if the company makes—

a a change of accounting policy (see subsection (4)), or b a change in the tax adjustments applied (see subsections (5) and (6)).

4 A “ change of accounting policy ” includes, in particular—

a a change from using UK generally accepted accounting practice to using generally accepted accounting practice with respect to accounts prepared in accordance with international accounting standards, and b a change from using generally accepted accounting practice with respect to accounts prepared in accordance with international accounting standards to using UK generally accepted accounting practice.

5 A “ tax adjustment ” means any adjustment required or authorised by law in calculating profits of a trade for corporation tax purposes.

6 A “change in the tax adjustments applied”—

a does not include a change made in order to comply with amending legislation not applicable to the previous period of account, but b includes a change resulting from a change of view as to what is required or authorised by law or as to whether any adjustment is so required or authorised.