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HMRC internal manual

Property Income Manual

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HM Revenue & Customs
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Use of trading income rules: application of other rules: IT to 2004-05 and CT

All the rules in ICTA88/S74 to ICTA88/S99 are applied to Schedule A as well as to Schedule D Case I by ICTA88/S21A (1) (as amended by FA98/SCH5) except:

  • Section 82 (interest paid to non-residents) - see PIM1104.
  • Section 87 (lease premium relief for traders) - lease premium relief for Schedule A purposes is given by Section 37 - see PIM2305.
  • Section 96 (farmers’ averaging) - see PIM1104.
  • Section 98 (tied premises).

Certain other Case I rules also apply to Schedule A. The table below sets out which rules these are, the statutory authority for applying them to Schedule A, and where you can find further guidance (where appropriate).

Statute applied to Schedule A Authority Instructions When from
       
Post cessation receipts and expenditure, ICTA88/S103 - S106, S108, S109A, S110 ICTA88/S21B BIM80500 onwards 6 April 1995 (IT)
1 April 1998 (CT)      
Cessation, treatment on a complete change of partners ICTA88/S113, (as amended by FA94) ICTA88/S21B BIM72200 onwards 6 April 1995 (IT)
Effect of company beginning or ceasing to carry on trade, ICTA88/S337 (1) ICTA88/S21B CTM02100 onwards 1 April 1998 (CT)
Relief for pre-trading expenditure, ICTA88/S401 ICTA88/S21B BIM46350 onwards 6 April 1995 (IT)
1 April 1998 (CT)      
Business entertainment expenses, ICTA88/S577 ICTA88/S21A (2) BIM45000 onwards 6 April 1998 (IT)
1 April 1998 (CT)      
Expenditure involving crime, ICTA88/S577A ICTA88/S21A (2) BIM43100 onwards 6 April 1998 (IT)
1 April 1998 (CT)      
Redundancy payments ICTA88/S579 and S580 ICTA88/S21A (2) BIM47200 onwards 6 April 1988 (IT)
1 April 1998 (CT)      
Relief for the cost of training employees, ICTA88/S588 - S589 ICTA88/S21A (2) BIM47080 6 April 1995 (IT)
1 April 1998 (CT)      
Relief for the cost of counselling employees, ICTA88/S589A - S589B ICTA88/S21A (2) BIM47060 6 April 1995 (IT)
1 April 1998 (CT)      
Consideration for restrictive undertakings FA88/S73 (2) ICTA88/S21A (2) BIM47005 6 April 1998 (IT)
1 April 1998 (CT)      
Deductions in respect of certain emoluments, FA89/S43 ICTA88/S21A (2) BIM47100 onwards 6 April 1998 (IT)
1 April 1998 (CT)      
Expenses in connection with non-approved retirement benefit schemes, FA89/S76 ICTA88/S21A (2) IM8412 - IM8415 6 April 1998 (IT)
1 April 1998 (CT)      
Expenses in connection with security, FA89/S112 - S113 ICTA88/S21A (2) BIM47300 onwards 6 April 1998 (IT)
1 April 1998 (CT)      
Computation of profits and losses, FA98/S42 and FA98/S46 (1) - (2) ICTA88/S21A (2) BIM31000 onwards 6 April 1998 (IT)
1 April 1998 (CT)      
Change of accounting basis, FA98/S44 and SCH6 ICTA88/S21B BIM34000 onwards 6 April 1998 (IT)
1 April 1998 (CT)      
Expenditure on remediation of contaminated land, FA01/SCH22 ICTA88/S21A (5) CIRD60000 onwards 1 April 2001 (CT)