Corporation Tax Act 2010 section 426

Amount of income and expense

Section 426 explains how the income and matching expense amounts are determined when a partner company's leasing income and corresponding expense fall in different accounting periods.

• The amount of income to be brought into account under section 425 is calculated using the rules set out in section 429.
• The matching expense amount is always equal to the income amount — they are the same figure.
• This ensures that the income recognised in one period is fully offset by an equal expense in the later period.
• The provision applies specifically to partner companies involved in the sale of a lessor's leasing business carried on in partnership.