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HMRC internal manual

Business Income Manual

Trade profits: statute - overview

The statute law directly applicable to trade profits is not a code which sets out to prescribe detailed rules for computing profits in all circumstances. It consists, in the main, of:

  • general charging provisions which are fairly brief and very widely drawn, see BIM15050 onwards, and
  • general deductions rules which are also widely drawn, see BIM42050 onwards, and
  • a number of more detailed rules usually dealing with specific situations and which, in the main, prescribe how particular receipts and expenses connected with the trade etc should be dealt with in the tax computation, see BIM42060 onwards.