Section 181 — Corporation Tax Act 2009: Giving effect to positive and negative adjustments

Giving effect to positive and negative adjustments 181 1 An amount by way of adjustment must be calculated in accordance with section 182.

2 If the amount produced by the calculation is positive—

a the amount is brought into account as a receipt in calculating the profits of the trade, and b the receipt is treated as arising on the first day of the first period of account for which the new basis is adopted.

3 If the amount produced by the calculation is negative—

a a deduction is allowed for the amount as an expense of the trade in calculating the profits of the trade, and b the expense is treated as arising on the first day of the first period of account for which the new basis is adopted.

4 This section is subject to—

a section 183 (no adjustment for certain expenses previously brought into account),

b section 184 (cases where adjustment not required until assets realised or written off),

and c section 185 (change from realisation basis to mark to market).