CHARGEABLE ACCOUNTING PERIOD

chargeable accounting period: translation

A company calculates its profits for its chargeable accounting period and then pays corporation tax on these profits nine months after the end of the chargeable accounting period (except for any advance corporation tax already paid). The chargeable accounting period is normally the same period of time as the company's accounting year. However, a chargeable accounting period cannot be for longer than one year. If a company changes its accounting year end, for example from 30 March to 30 June, in the year of the change, it will have a fifteen month accounting period, from 1 April one year to 30 June the next year. For tax purposes, it will be obliged to break this down into two chargeable accounting periods, one of twelve months and one of three months. Dresdner Kleinwort Wasserstein financial glossary