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The provisions relating to the basis of assessment for income tax purposes (Part B4) do not apply for corporation tax; the basis in all cases is the profits (ie income and chargeable gains) arising in the accounting period concerned except where it is necessary to apportion the profits of a period longer than 12 months¹.

The meaning of accounting period is considered in D1.303A.

The basic rule is that all corporate profits are computed on the full amount arising, whether or not it is remitted to the UK, and subject only to any deductions specifically authorised by the Corporation Tax Acts². However, this rule is modified in the following situations:

1. Ìý

   •ÌýÌýÌýÌý Where the necessary conditions are satisfied (see E1.607), unremittable overseas income may be excluded from total profits of the accounting period in which it arises and is included in total profits of the accounting period in which it becomes available for remittance. The amount taken into account is the value of the income at the date on which it