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Bad debt recovered - what corporation tax rate applies?

Posted by alistairjallan PM | on Fri, 10/02/2012 - 12:01  282  1 comment | report

Bad debt relief claimed in corporation tax return in 2008 @30%

Bad debt now recovered, do we include in 2012 return as taxable @ 26% or do we have to repay the relief previously claimed @30%? 

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thisistibi's picture

Follow the accounting treatment    1 thanks

thisistibi | Fri, 10/02/2012 - 12:03 | Permalink

If the company is releasing the bad debt provision in 2012, then the taxable income arises in 2012 and the 2012 tax rates apply.  You're simply following the accounting treatment.