Part 20General calculation rules

Chapter 1Restriction of deductions

Unpaid remuneration

1288Unpaid remuneration

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), and

b

section 76ZL of ICTA (in relation to the expenses of insurance companies).