PART IIF2PROVISIONS RELATING TO THE SCHEDULE A CHARGE

Annotations:
Amendments (Textual)
F2

Pt. 2 heading substituted (with effect as mentioned in s. 38(2)(3) of the amending Act) by Finance Act 1998 (c. 36), s. 38(1), Sch. 5 para. 3 (with Sch. 5 para. 73)

General

F121A Computation of amount chargeable.

1

Except as otherwise expressly provided, the profits of a Schedule A business are computed in the same way as the profits of a trade are computed for the purposes of Case I of Schedule D.

2

The following provisions apply in accordance with subsection (1)—

  • section 72 (apportionment);

  • the provisions of Chapter V of Part IV (computational provisions relating to the Schedule D charge), except as mentioned in subsection (4) below;

  • section 577 (business entertainment expenses);

  • section 577A (expenditure involving crime);

  • sections 579 and 580 (redundancy payments);

  • F4section 588 (training courses for employees);

  • F5section 589A (counselling services for employees);

  • section 73(2) of the M1Finance Act 1988 (consideration for restrictive undertakings);

  • section 43 of the M2Finance Act F61989 (Schedule D: computation);

  • section 76 of that Act (expenses in connection with non-approved retirement benefit schemes);

  • sections 112 and 113 of that Act (expenditure in connection with provision of security asset or service);

  • sections 42 and 46(1) and (2) of the Finance Act 1998 (provisions as to computation of profits and losses).

3

Section 74(1)(d) of this Act (disallowance of provisions for future repairs) applies in relation to a Schedule A business as if the reference to premises occupied for the purposes of the trade were to premises held for the purposes of the Schedule A business.

4

The following provisions in Chapter V of Part IV of this Act do not apply, or are excepted from applying, in accordance with subsection (1)—

  • section 82 (interest paid to non-residents),

  • section 87 (treatment of premiums taxed as rent),

  • section 96 (farming and market gardening: relief for fluctuating profits), and

  • section 98 (tied premises: receipts and expenses treated as those of trade).

F35

Part 1 of Schedule 22 to the Finance Act 2001 (deduction for capital expenditure on remediation of contaminated land) applies in accordance with subsection (1), and the other Parts of that Schedule (further provision as to relief for remediation of contaminated land) have effect in relation to a Schedule A business in accordance with their provisions.