SCHEDULES

SCHEDULE 2 U.K.Trades and property businesses: calculation of profits

PART 3 U.K.Trades etc: amendments of other Acts

CAA 2001 U.K.

51 (1) Section 4 (capital expenditure) is amended as follows. U.K.

(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—

  (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

  (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).”