Income Tax (Trading and Other Income) Act 2005 (c. 5)

Part 3 U.K. Property income

Chapter 3 U.K. Profits of property businesses: basic rules

Calculation of profits U.K.

274 Relationship between rules prohibiting and allowing deductions U.K.

(1) Any relevant permissive rule in this Part—

(a) has priority over any relevant prohibitive rule in this Part, but

(b) is subject to [F1 section 36 (unpaid remuneration), section 38 (employee benefit contributions), section 48 (car F2 ... hire) and section] 55 (crime-related payments), as applied by section 272.

(2) In this section “any relevant permissive rule in this Part” means any provision of this Part (apart from sections 291 to 294) which allows a deduction in calculating the profits of a property business.

(3) In this section “any relevant prohibitive rule in this Part”, in relation to any deduction, means any provision of this Part (apart from sections [F3 36, 38,] 48 and 55, as applied by section 272) which might otherwise be read as—

(a) prohibiting the deduction, or

(b) restricting the amount of the deduction.

(4) In this section any reference to any provision of this Part includes any provision applied by section 272.

Textual Amendments

F1 Words in s. 274(1)(b) substituted (with effect as stated in s. 67(7) of the amending Act) by Finance Act 2007 (c. 11), s. 67(5)

F2 Words in s. 274(1)(b) omitted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 11 para. 42

F3 Words in s. 274(3) inserted (with effect as stated in s. 67(7) of the amending Act) by Finance Act 2007 (c. 11), s. 67(6)