Statement of Practice 16 (1991)
Published 3 December 1991
© Crown copyright 1991
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.
Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.
This publication is available at https://www.gov.uk/government/publications/statement-of-practice-16-1991/statement-of-practice-16-1991
It is the practice to allow, in computing profits assessable under Schedule D Cases I and II, the normal accountancy expenses incurred in preparing accounts and agreeing taxation liabilities. Additional accountancy expenses arising out of an investigation of a particular year’s accounts will not be allowed where the investigation reveals discrepancies and additional liabilities for earlier years, or a settlement involving only 1 year includes interest or interest and penalties. Where, however, the investigation results in no addition to profits, or an adjustment to profits for the year of review only without a charge to interest or interest and penalties, the additional accountancy expenses will normally be allowed.
Cross reference
See Tax Bulletin Issue 37, October 1998: Accountancy expenses arising out of self-assessment enquiries (until such time as Statement of Practice 16 (1991) is superseded, the relevant text included in Tax Bulletin 37 is to be regarded as a statement of HM Revenue and Customs (HMRC) practice, as it applies to self assessment enquiries).
Revenue Interpretation RI 192— Schedule D Cases I and II: accountancy expenses arising out of self-assessment enquiries.
HMRC Manuals
Enquiry Manual EM9010 Accountancy expenses arising out of enquiries.
Note: this statement supersedes Statement of Practice A28.