Section 915 — Corporation Tax Act 2009: UK resident companies: proceeds of sale received in instalments

UK resident companies: proceeds of sale received in instalments 915 1 This section applies if a company liable for tax under section 912—

a is UK resident, and b receives the proceeds of sale in instalments.

2 The appropriate fraction of the amount chargeable in respect of each instalment is taxed—

a in the accounting period in which the company receives the instalment (“the period of receipt”),

and b in successive accounting periods, until the expiry of the 6-year period beginning at the start of the period of receipt.

3 The appropriate fraction of the amount chargeable in respect of an instalment is the same fraction of that amount as the accounting period in question is of 6 years (or, in the last period, such smaller fraction of the amount as has not already been taxed).

4 The company may elect that the whole of any instalment is to be taxed instead in the period of receipt.

5 An election under subsection (4) must be made within the two-year period beginning at the end of the period of receipt.