BIM42101 - Measuring the profits (specific rules & practices) - receipts & deductions: deductions - scope of: starting point
What can be deducted?
You cannot deduct expenditure in computing the profits of a business for income tax purposes if, either:
- it falls within the scope of any of the prohibitions specified in The Taxes Acts (for example entertaining, ITTOIA05/S45-S47 or CTA09/S1298-S1300), or
- it is not a proper debit item to be charged under ordinary commercial principles against the incomings of the business in computing the balance of the profits.
See
Usher's Wiltshire Brewery Ltd v Bruce 6TC399 |
BIM37200 |
Atherton v British Insulated & Helsby Cables Ltd 10TC155 |
BIM35010 |
Morley v Lawford & Co 14TC229 |
BIM37780 |

