Part 2Trading income

Chapter 5Trade profits: rules allowing deductions

F1Cash basis accounting

56AApplication of Chapter to the cash basis

(1)

The following sections do not apply in calculating the profits of a trade on the cash basis—

  • sections 60 to 67 (tenants under taxed leases).

  • F2...

F3(2)

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(3)

In calculating the profits of a trade on the cash basis, any reference in this Chapter to the incurring of expenses is to be read as a reference to the paying of expenses.