Part 3Trading income

Chapter 3Trade profits: basic rules

51Relationship between rules prohibiting and allowing deductions

1

Any relevant permissive rule in this Part—

a

has priority over any relevant prohibitive rule, but

b

is subject to—

i

section 56 (car F1... hire),

ii

section 1288 (unpaid remuneration),

iii

section 1290 (employee benefit contributions),

iv

section 1304 (crime-related payments).

2

In this section “any relevant permissive rule in this Part” means any provision of—

a

Chapter 5 (trade profits: rules allowing deductions), apart from sections 62 to 67,

b

Chapter 7 (trade profits: gifts to charities etc),

c

Chapter 9 (trade profits: other specific trades), or

d

Chapter 12 (deductions from profits: unremittable amounts),

which allows a deduction in calculating the profits of a trade.

3

In this section “any relevant prohibitive rule”, in relation to any deduction, means any provision of this Part or Chapter 1 of Part 20 (apart from those mentioned in subsection (1)(b)) which might otherwise be read as—

a

prohibiting or deferring the deduction, or

b

restricting the amount of the deduction.