SCHEDULES

SCHEDULE 2Trades and property businesses: calculation of profits

PART 3Trades etc: amendments of other Acts

CAA 2001

51

1

Section 4 (capital expenditure) is amended as follows.

2

In subsection (2)—

a

omit “or” at the end of paragraph (a), and

b

after paragraph (a) insert—

aa

any cash basis expenditure, other than expenditure incurred on the provision of a car, or

3

After subsection (2) insert—

2ZA

In subsection (2)(aa)—

  • “cash basis expenditure” means any expenditure incurred—

    1. a

      in the case of a trade, profession or vocation, at a time when an election under section 25A of ITTOIA 2005 has effect in relation to the trade, profession or vocation, or

    2. b

      in the case of a property business, in a tax year for which the profits of the business are calculated on the cash basis (see section 271D of that Act); and

  • “car” has the same meaning as in Part 2 (see section 268A).