Finance Act 2024

CAA 2001

39 (1) Section 1A (capital allowances and charges: cash basis) is amended as follows.

(2) In subsection (9)—

(a) in paragraph (a), for “an election under section 25A of ITTOIA 2005 (cash basis for trades) has effect” substitute “the cash basis applies”;

(b) in paragraph (b), for “no such election has effect” substitute “the cash basis did not apply”.

(3) In subsection (11)—

(a) before paragraph (a) insert—

“(za) references to a trade, profession or vocation in relation to which the cash basis applies are to a trade, profession or vocation the profits of which are required by virtue of section 24A(1) of ITTOIA 2005 to be calculated on the cash basis,”;

(b) in paragraph (a), for the words from “calculating”, in the second place it occurs, to “effect” substitute “doing so in accordance with section 24A of ITTOIA 2005”.