Section 1288 Unpaid remuneration

United Kingdom

(1)

This section applies if—

(a)

an amount is charged in respect of employees' remuneration in a company's accounts for a period,

(b)

the amount would, apart from this section, be deductible in calculating income from any source for corporation tax purposes, and

(c)

the remuneration is not paid before the end of the period of 9 months immediately following the end of the period of account.

(2)

If the remuneration is paid after the end of that period of 9 months, the deduction for it is allowed for the period of account in which it is paid.

(3)

No deduction is allowed for the remuneration if it is not paid.

(4)

Provision corresponding to that made by this section is made by—

(a)

section 1249 (in relation to expenses of management of a company's investment business), F1including as applied by section 82 of FA 2012 F2...

(b)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations

F1: Words in s. 1288(4)(a) inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 209(a)
F2: S. 1288(4)(b) and the word immediately preceding it omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 209(b)

C1: Pt. 20 Ch. 1 applied by 1989 c. 26, s. 85(2BA) (as substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 348(4) (with Sch. 2 Pts. 1, 2))
C2: Pt. 20 Ch. 1 applied (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 92(4) (with s. 147, Sch. 17)