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HMRC internal manual

Business Income Manual

Deductions: general: contents

If an item is a proper deduction according to generally accepted accounting practice it should be allowed in computing trade profits unless it is expressly prohibited by legislation. This chapter introduces the various statutory prohibitions on deductions and also introduces rules which permit specific deductions. The rules determining the priority to be given where both a permissive and a prohibitive rule would otherwise apply are discussed at BIM42080.

For the rules regarding deductions for a business using the cash basis, see BIM70030 onwards.

This chapter contains the following: