Transfer of Deductions – Highly Likely Disallowed Deductions
CTA10/S730B; CTA10/S730C (6); CTA10/S730D (4)
A deductible amount which would be disallowed for the purposes of these transfer of deduction rules includes:
- an expense of a trade
- an expense of a property business
- an expense of management of a company’s investment business within the meaning of section 1219 of CTA 2009
- a non-trading debit within the meaning of Parts 5 and 6 of CTA 2009 (loan relationships and derivative contracts); and
- a non-trading debit within the meaning of Part 8 of CTA 2009 (intangible fixed assets).
But does not include:
- Any amount which has been taken into account in determining the “relevant tax written down value” within the meaning of CAA01/Part 2/Chapter 16A (CA27850); or
If the relevant day is on or after 1 April 2014, an amount treated as an expense of the trade by being a research and development expense by virtue of CAA01/S450(a) (CA60000)
When determining if a deduction is highly likely, factors to take into account include any relevant arrangements made on or before the relevant day, any relevant events on or before that day.