Part 2Trading income

Chapter 3Trade profits: basic rules

31Relationship between rules prohibiting and allowing deductions

(1)

Any relevant permissive rule in this Part—

(a)

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

(b)

is subject to sections 48 (car or motor cycle hire) and 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 48 and 55) which might otherwise be read as—

(a)

prohibiting the deduction, or

(b)

restricting the amount of the deduction.