Finance (No. 2) Act 2017

20 (1) Section 274 (relationship between rules prohibiting and allowing deductions) is amended as follows.

(2) For subsection (1)(b) substitute—

“(b) is subject to—

(i) section 36 (unpaid remuneration), as applied by section 272,

(ii) section 38 (employee benefit contributions), as applied by sections 272 and 272ZA,

(iii) section 48 (car hire), as applied by section 272,

(iv) section 55 (crime-related payments), as applied by sections 272 and 272ZA,

(v) section 272A (finance costs), and

(vi) section 307D (cash basis: modification of deduction for costs of loans).”

(3) In subsection (3)—

(a) after “section 272” insert “, or sections 38 and 55 as applied by section 272ZA”, and

(b) for “section 272A” insert “sections 272A and 307D”.

(4) In subsection (4), after “section 272” insert “or 272ZA”.