C2Part 3Trading income
Chapter 5Trade profits: rules allowing deductions
Pre-trading expenses
C3C1C461Pre-trading expenses
1
This section applies if a company incurs expenses for the purposes of a trade before (but not more than 7 years before) the date on which the company 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).
3
This section does not apply to any expenses in relation to which—
a
any debit falls, or
b
any debit would fall but for section 330 (loan relationships: debits in respect of pre-trading expenditure),
to be brought into account for the purposes of Part 5 (loan relationships).
Pt. 3 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 4(1)