Part 2Trading income
Chapter 5Trade profits: rules allowing deductions
Pre-trading expenses
C157Pre-trading expenses
1
This section applies if a person incurs expenses for the purposes of a trade before (but not more than 7 years before) the date on which the person starts to carry on the trade (“the start date”).
2
If, in calculating the profits of the trade—
a
no deduction would otherwise be allowed for the expenses, but
b
a deduction would be allowed for them if they were incurred on the start date,
the expenses are treated as if they were incurred on the start date (and therefore a deduction is allowed for them).