# Corporation Tax Act 2009, Section 94: Debts incurred and later released


(1) This section applies if—
(a) in calculating the profits of a trade, a deduction is allowed for the expense giving rise to a debt owed by the company carrying on the trade,
(b) all or part of the debt is released, and
(c) the release is not part of a statutory insolvency arrangement.
(2) The amount released—
(a) is brought into account as a receipt in calculating the profits of the trade, and
(b) is treated as arising in the accounting period in which the release is effected.

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Source: https://www.legislation.gov.uk/ukpga/2009/4/section/94 (the official version)
Page: https://openlegislation.uk/corporation-tax-act-2009/section-94
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.