Income Tax (Trading and Other Income) Act 2005 (c. 5)

Part 2 U.K. Trading income

Chapter 3 U.K. Trade profits: basic rules

31 Relationship between rules prohibiting and allowing deductions U.K.

(1) Any relevant permissive rule in this Part—

(a) has priority over any relevant prohibitive rule in this Part, but

(b) is subject to [F1 section 36 (unpaid remuneration), section 38 (employee benefit contributions), section 48 (car F2 ... hire) and section] 55 (crime-related payments).

(2) In this section “any relevant permissive rule in this Part” means any provision of—

(a) Chapter 5 (apart from sections 60 to 67),

(b) Chapter 11, or

(c) Chapter 13,

which allows a deduction in calculating the profits of a trade.

(3) In this section “any relevant prohibitive rule in this Part”, in relation to any deduction, means any provision of this Part (apart from sections [F3 36, 38,] 48 and 55) which might otherwise be read as—

(a) prohibiting the deduction, or

(b) restricting the amount of the deduction.

Textual Amendments

F1 Words in s. 31(1)(b) substituted (with effect as stated in s. 67(7) of the amending Act) by Finance Act 2007 (c. 11), s. 67(2)

F2 Words in s. 31(1)(b) omitted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 11 para. 35

F3 Words in s. 31(3) inserted (with effect as stated in s. 67(7) of the amending Act) by Finance Act 2007 (c. 11), s. 67(3)