[F131ECalculation of profits on cash basisU.K.
This section has no associated Explanatory Notes
(1)This section applies to professions and vocations as it applies to trades.
(2)To determine the profits of a trade for a tax year on the cash basis—
Step 1 Calculate the total amount of receipts of the trade received during the basis period for the tax year.
Step 2 Deduct from that amount the total amount of expenses of the trade paid during the basis period for the tax year.
(3)Subsection (2) is subject to any adjustment required or authorised by law in calculating profits for income tax purposes.]
Textual Amendments
F1Pt. 2 Ch. 3A inserted (with effect in accordance with Sch. 4 paras. 56, 57 of the amending Act) by Finance Act 2013 (c. 29), Sch. 4 para. 5