Commentary

B2.112A Cash basis—adjustments for capital allowances

Business tax
Business tax | Commentary

B2.112A Cash basis—adjustments for capital allowances

Business tax | Commentary

B2.112A Cash basis—adjustments for capital allowances

Where a person enters the cash basis for small businesses from 2013/14 (see B2.112) for a tax year, adjustments are required for capital allowances purposes1. This is because such businesses do not claim capital allowances (other than on cars), but are instead allowed a deduction from profits for certain capital expenditure2.

In calculating the profits of the trade for the first cash basis period where the trader had been claiming capital allowances in the previous period for which there are unrelieved balances, a deduction is allowed for the amount of that expenditure that would be allowed under the cash

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial