Part 2Trading income
Chapter 4Trade profits: rules restricting deductions
Wholly and exclusively and losses rules
34Expenses not wholly and exclusively for trade and unconnected losses
1
In calculating the profits of a trade, no deduction is allowed for—
a
expenses not incurred wholly and exclusively for the purposes of the trade, or
b
losses not connected with or arising out of the trade.
2
If an expense is incurred for more than one purpose, this section does not prohibit a deduction for any identifiable part or identifiable proportion of the expense which is incurred wholly and exclusively for the purposes of the trade.