Corporation Tax Act 2009 section 918

Winding up of a body corporate

Section 918 deals with what happens to deferred patent sale profits when a company begins to wind up.

• When a company that has sold patent rights enters winding up, all deferred tax charges are accelerated into a single accounting period.
• The accelerated amounts are those that would otherwise have been spread over future periods under the normal spreading rules for UK resident companies.
• The same acceleration applies to amounts that non-UK resident companies had elected to spread over future periods.
• All such outstanding amounts become taxable in the accounting period in which the winding up commences.