Policy paper

Cash basis: treatment of capital

This measure replaces a general prohibition on deductions for capital expenditure in calculating taxable profits using the cash basis.

Documents

Draft legislation: cash basis - treatment of capital

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Details

This clause replaces a general prohibition on deductions for capital expenditure in calculating taxable profits using the cash basis, with a more focused and limited prohibition on deductions for certain specified capital expenditure.

Comments about this legislation should be send to John Banks by email: john.banks1@hmrc.gsi.gov.uk by 28 February 2017.

Secondary legislation on increasing the cash basis thresholds for unincorporated businesses has also been published.

Published 31 January 2017
Last updated 31 January 2017 + show all updates
  1. The Income Tax (Relevant Maximum for Calculating Trade Profits on the Cash Basis) Order 2017 and explanatory memorandum have been added to this page.
  2. First published.