BIM51510 - Builders, property dealers & developers: income recognition

S25 Income Tax (Trading and Other Income) Act 2005, S46 Corporation Tax Act 2009

For tax purposes, accounts prepared according to generally accepted accounting practice are the starting point for calculating trade profits.

Such accounts are therefore also the starting point for income recognition for tax purposes, subject to any over-riding statutory or case law principle (see BIM30510).

The guidance on income recognition is arranged as follows