BIM42080 - Deductions: general: interaction between prohibitive and permissive rules

S31 Income Tax (Trading and Other Income) Act 2005, S51 Corporation Tax Act 2009

In general, rules which permit a deduction take priority over rules which prohibit a deduction.

The following prohibitive rules, however, take priority over permissive rules.

Income Tax (Trading and Other Income) Act 2005 section	Corporation Tax Act 2009 section	Prohibitive rule	Further guidance
36	1288	Unpaid remuneration	BIM47130 onwards
38	1290	Employee benefit contributions	BIM44500
48	56	Car hire	BIM47780 onwards
55	1304	Crime-related payments	BIM43100 onwards

‘Prohibitive rule’ extends, for this purpose, beyond the list of provisions at BIM42060 to include any provision relating to the calculation of trade profits which might be read as prohibiting or restricting the amount of a deduction.