Part 3Property income

Chapter 3Profits of property businesses: basic rules

Calculation of profits : application of trading income rules

272F1Application of trading income rules: GAAP

F2(1)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)

F3In relation to a property business whose profits are calculated in accordance with GAAP, the provisions of Part 2 (trading income) which apply as a result of section 271E(1) are limited to the following—

In Chapter 3 (basic rules)—

F4. . .

F4. . .

section 26

losses calculated on same basis as profits

section 27

receipts and expenses

section 28

items treated under CAA 2001 as receipts and expenses

F5section 28A

money's worth

section 29

interest

In Chapter 4 (rules restricting deductions)—

section 33

capital expenditure

section 34

expenses not wholly and exclusively for trade and unconnected losses

section 35

bad and doubtful debts

sections 36 and 37

unpaid remuneration

sections 38 to 44

employee benefit contributions

sections 45 to 47

business entertainment and gifts

sections 48 to F650B

car F7... hire

F8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

section 52

exclusion of double relief for interest

section 53

social security contributions

section 54

penalties F9, interest and VAT surchargesF9and interest

section 55

crime-related payments

F10section 55A

expenditure on integral features

In Chapter 5 (rules allowing deductions)—

section 57

pre-trading expenses

sections 58 and 59

incidental costs of obtaining finance

F11. . .

F11. . .

section 69

payments for restrictive undertakings

sections 70 and 71

seconded employees

section 72

payroll deduction schemes: contributions to agents' expenses

sections 73 to 75

counselling and retraining expenses

sections 76 to 80

redundancy payments etc.

section 81

personal security expenses

sections 82 to 86

contributions to local enterprise organisations or urban regeneration companies

F12sections 86A and 86B

contributions to flood and coastal erosion risk management projects

sections 87 and 88

scientific research

sections 89 and 90

expenses connected with patents, designs and trade marks

section 91

payments to Export Credits Guarantee Department

F13section 94A

costs of setting up SAYE option scheme or CSOP scheme

F14section 94AA

deductions in relation to salaried members of limited liability partnerships

F15In Chapter 5A (deductions allowable at a fixed rate)

section 94C

exclusion of provisions of Chapter 5A for firms with partner who is not an individual

sections 94D to 94G

expenditure on vehicles

In Chapter 6 (receipts)—

section 96

capital receipts

section 97

debts incurred and later released

section 104

distribution of assets of mutual concerns

section 105

industrial development grants

section 106

sums recovered under insurance policies etc.

In Chapter 7 (gifts to charities etc.)—

section 109

receipt by donor or connected person of benefit attributable to certain gifts

F16In Chapter 10A (long funding leases)—

Sections 148A to 148J

Leases of plant or machinery: special rules for long funding leases

In Chapter 11 (other specific trades)—

section 155

levies and repayments under FISMA 2000

In Chapter 13 (deductions from profits)—

sections 188 to 191

unremittable amounts

(3)

In those provisions the expression “this Part” is to be read as a reference to those provisions as applied by subsection (2) and to the other provisions of Part 3.