CIRD12580 - Core computational rules: deductible debits: general matters and adjustments for tax purposes: mostly relevant where expenditure written off as incurred

CTA09/PART8/S865 - 869

Disallowance of otherwise deductible debits

Sums that would otherwise give rise to deductible debits under S728 may be ‘subject to any adjustments required� by CTA09/PART8 (see below and CIRD12030). In the absence of specific provision within CTA09/PART8, rules disallowing expenditure in other parts of the CT code do not apply.

Provisions attracted or reproduced

»Ê¹ÚÌåÓýapp rules listed below from other parts of the CT code are attracted or reproduced in Part 8 and may apply to expenditure written off as incurred within CIRD12530 or CIRD12550.

An otherwise deductible debit may need to be disallowed to the extent it represents expenditure relating to:

  • entertaining and gifts - CIRD12600;
  • crime - CIRD12610;
  • the hire of cars not exempted from restrictions (generally this means cars with CO2 emissions over 160g/km - CIRD12620; and
  • employer-financed retirement benefit schemes - CIRD12630.

An otherwise deductible debit may need to be deferred to a later accounting period to the extent it represents expenditure relating to:

  • delayed payment of pension contributions - CIRD12640;
  • delayed payment of remuneration - CIRD12650; and
  • delayed payment of royalties to certain ‘related partiesâ€� - CIRD12660.

Debt impairments and bad debts

»Ê¹ÚÌåÓýappre are provisions addressing the impairment of debts which are similar to those in the general corporation tax rules. »Ê¹ÚÌåÓýappse are dealt with at CIRD12670.

Transfer pricing

Debits for expenditure written off as incurred may also need to be adjusted under the transfer pricing rules - see CIRD47060 for their application to transactions with CTA09/PART8.