Part 2Trading income

Chapter 5Trade profits: rules allowing deductions

Renewals

68Replacement and alteration of trade tools

(1)

This section applies if—

(a)

expenses are incurred on replacing or altering any tool used for the purposes of a trade, and

(b)

a deduction for the expenses would not otherwise be allowable in calculating the profits of the trade because (and only because) they are items of a capital nature.

(2)

In calculating the profits of the trade, a deduction is allowed for the expenses.

(3)

In this section “tool” means any implement, utensil or article.