CIRD12580 - Core computational rules: deductible debits: general matters and adjustments for tax purposes: mostly relevant where expenditure written off as incurred
FA02/SCH29/PARA112 - 115
Disallowance of otherwise deductible debits
Sums that would otherwise give rise to deductible debits under paragraph 8 may be ‘subject to any adjustment required for tax purposes’. Adjustments for which Schedule 29 makes specific provision are within this definition (see below and CIRD12030). In the absence of such provision, rules disallowing expenditure in other parts of the CT code do not apply.
Provisions attracted or reproduced
The rules listed below from other parts of the CT code are
attracted or reproduced in Schedule 29 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 costing over £12,000 - CIRD12620,
- unapproved retirement benefits - 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,
- delayed payment of royalties to certain ‘related parties’ - CIRD12660.
Debt impairments and bad debts
There are provisions addressing the impairment of debts which are similar to those in the general corporation tax rules. These 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 Schedule 29.
