PART 3

Income tax and corporation tax

Trade and property business profits

Trade and property business profits: money's worth
71
1
ITTOIA 2005 is amended in accordance with subsections (2) and (3).
2
In Chapter 3 of Part 2 (trade profits: basic rules), after section 28 insert—

Money's worth
28A
1
Subsection (2) applies—
a
for the purpose of bringing into account an amount arising in respect of a transaction involving money's worth entered into in the course of a trade, and
b
if an amount at least equal to the amount that would be brought into account under that subsection is not otherwise brought into account as a receipt in calculating the profits of a trade under a provision of this Part other than a provision mentioned in subsection (3).
2
For the purpose of calculating the profits of the trade, an amount equal to the value of the money's worth is brought into account as a receipt if, had the transaction involved money, an amount would have been brought into account as a receipt in respect of it.
3
But where another provision of this Part makes express provision for the bringing into account of an amount in respect of money's worth as a receipt in calculating the profits of a trade (however expressed), that other provision applies instead of subsection (2).
3
In Chapter 3 of Part 3 (profits of property businesses), in section 272 (application of trading income rules), in the Table in subsection (2), at the appropriate place insert—
section 28A | money's worth
.
4
CTA 2009 is amended in accordance with subsections (5) and (6).
5
In Chapter 3 of Part 3 (trade profits: basic rules), after section 49 insert—

Money's worth
49A
1
Subsection (2) applies—
a
for the purpose of bringing into account an amount arising in respect of a transaction involving money's worth entered into in the course of a trade, and
b
if an amount at least equal to the amount that would be brought into account under that subsection is not otherwise brought into account as a receipt in calculating the profits of a trade under a provision of this Part other than a provision mentioned in subsection (3).
2
For the purpose of calculating the profits of the trade, an amount equal to the value of the money's worth is brought into account as a receipt if, had the transaction involved money, an amount would have been brought into account as a receipt in respect of it.
3
But where another provision of this Part makes express provision for the bringing into account of an amount in respect of money's worth as a receipt in calculating the profits of a trade (however expressed), that other provision applies instead of subsection (2).
6
In Chapter 3 of Part 4 (profits of property businesses), in section 210 (application of trading income rules), in the Table in subsection (2), at the appropriate place insert—
section 49A | money's worth
.
7
The amendments made by this section have effect in relation to transactions entered into on or after 16 March 2016.