SCHEDULES

SCHEDULE 4 U.K.Cash basis for small businesses

PART 1 U.K.Main provisions

Rules restricting deductions U.K.

7 U.K.After section 32 insert—

“Cash basis accounting U.K.

32A Application of Chapter to the cash basis

(1) The following sections do not apply in calculating the profits of a trade on the cash basis—

• section 33 (capital expenditure),

• section 35 (bad and doubtful debts),

• sections 36 and 37 (unpaid remuneration),

• section 43 (employee benefit contributions: profits calculated before end of 9 month period),

• sections 48 to 50B (car hire).

(2) For rules restricting deductions that apply only where profits are calculated on the cash basis, see the following—

• section 33A (cash basis: capital expenditure),

• section 51A (cash basis: interest payments on loans).”