Corporation Tax Act 2009 (c. 4)

Part 3 U.K. Trading income

Modifications etc. (not altering text)

C1 Pt. 3 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 4(1)

Chapter 5 U.K. Trade profits: rules allowing deductions

Pre-trading expenses U.K.

61 Pre-trading expenses U.K.

(1) This section applies if a company incurs expenses for the purposes of a trade before (but not more than 7 years before) the date on which the company starts to carry on the trade (“the start date”).

(2) If, in calculating the profits of the trade—

(a) no deduction would otherwise be allowed for the expenses, but

(b) a deduction would be allowed for them if they were incurred on the start date,

the expenses are treated as if they were incurred on the start date (and therefore a deduction is allowed for them).

(3) This section does not apply to any expenses in relation to which—

(a) any debit falls, or

(b) any debit would fall but for section 330 (loan relationships: debits in respect of pre-trading expenditure),

to be brought into account for the purposes of Part 5 (loan relationships).

Modifications etc. (not altering text)

C2 S. 61 excluded (with effect in accordance with Sch. 7 paras. 27, 28 of the commencing Act) by Finance Act 2009 (c. 10), Sch. 7 para. 28

C3 S. 61 modified (with effect in accordance with ss. 80(1), 81 of the amending Act) by Finance Act 2016 (c. 24), s. 80(2) (and also with effect in accordance with Finance (No. 2) Act 2017 (c. 32), s. 39(1)(2))

C4 S. 61 excluded (22.7.2020) by Finance Act 2020 (c. 14), Sch. 16 para. 4(6)