Finance (No. 2) Act 2017

PART 4 Commencement and transitional provision

64 (1) The amendments made by this Schedule have effect for the tax year 2017-18 and subsequent tax years.

(2) If—

(a) disregarding this sub-paragraph, under section 33A of ITTOIA 2005, as inserted by paragraph 2 of Part 1, a deduction would not be allowed in calculating the profits of a trade, profession or vocation on the cash basis for the tax year 2017-18, but

(b) if the amendment made by paragraph 2 were not to have effect for that tax year, that deduction would be allowed in calculating the profits of that trade, profession or vocation on that basis for that tax year,

that deduction is to be allowed in calculating the profits of that trade, profession or vocation on that basis for that tax year.

(3) Sub-paragraph (2) is to be disregarded in determining any question as to whether or to what extent an amount of expenditure would, on the assumption that it was paid in the tax year 2017-18, be brought into account in calculating the profits of a trade, profession or vocation for the tax year 2017-18 for the purposes of—

(a) the following provisions of CAA 2001—

(i) section 1A (capital allowances and charges: cash basis),

(ii) section 59 (unrelieved qualifying expenditure),

(iii) section 419A (unrelieved qualifying expenditure: entry to cash basis),

(iv) section 461A (unrelieved qualifying expenditure: entry to cash basis), and

(v) section 475A (unrelieved qualifying expenditure: entry to cash basis); and

(b) the following provisions of ITTOIA 2005—

(i) section 96A (capital receipts under, or after leaving, cash basis),

(ii) section 240C (unrelieved qualifying expenditure: Parts 2, 7 and 8 of CAA 2001),

(iii) section 240CA (unrelieved qualifying expenditure: Part 5 of CAA 2001), and

(iv) section 240D (assets not fully paid for).

(4) But sub-paragraph (2) is not to be disregarded in determining any question as to whether or to what extent an amount of expenditure is actually brought into account in calculating the profits of a trade, profession or vocation for the tax year 2017-18 for the purposes of the provisions mentioned in paragraphs (a) and (b) of sub-paragraph (3).