[F1272ZAApplication of trading income rules: cash basisU.K.
(1)In relation to a property business whose profits are calculated on the cash basis, 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)— | |
|---|---|
| section 26 | losses calculated on same basis as profits |
| section 28A | money's worth |
| section 29 | interest |
| In Chapter 4 (rules restricting deductions)— | |
| section 34 | expenses not wholly and exclusively for trade and unconnected losses |
| sections 38 to 42 and 44 | employee benefit contributions |
| sections 45 to 47 | business entertainment and gifts |
| section 52 | exclusion of double relief for interest |
| section 53 | social security contributions |
| section 54 | penalties [F2, interest and VAT surcharges] [F2and interest] |
| section 55 | crime-related payments |
| section 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 |
| 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 |
| sections 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 |
| [F3In 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(1) and (2)(b) and (c) | industrial development grants |
| section 106 | sums recovered under insurance policies etc |
| In Chapter 6A (amounts not reflecting commercial transactions)— | |
| section 106C | amounts not reflecting commercial transactions |
| section 106D | capital receipts |
| section 106E | gifts to charities etc |
| In Chapter 7 (gifts to charities etc)— | |
| section 109 | receipt by donor or connected person of benefit attributable to certain gifts” |
(2)In those provisions, the expression “this Part” is to be read as a reference to those provisions as applied by subsection (1) and to the other provisions of Part 3.
(3)In section 106D, the reference to subsection (4) or (5) of section 96A is to be read as a reference to subsection (2), (3) or (5) of section 307F (deemed capital receipts under, or after leaving, cash basis).]
Textual Amendments
F1S. 272ZA inserted (16.11.2017) (with effect in accordance with Sch. 2 para. 64 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 2 para. 17
F2Words in s. 272ZA(1) substituted (1.1.2023 for specified purposes, 6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 33; S.I. 2022/1278, reg. 2(3)(4)(b); S.I. 2024/440, reg. 2
F3Words in s. 272ZA(1) Table inserted (with effect in accordance with s. 36(8) of the amending Act) by Finance Act 2018 (c. 3), s. 36(5)