Commentary

B2.117 Introduction to unremittable amounts

Business tax
Business tax | Commentary

B2.117 Introduction to unremittable amounts

Business tax | Commentary

Deductions from profits—unremittable amounts

B2.117 Introduction to unremittable amounts

Tax relief is available for overseas trade debts that cannot be remitted to the UK because of exchange control restrictions or because of a shortage of foreign currency in the debtor's country. Such debts are not bad or doubtful debts and have their own separate relief. For income tax purposes the provisions apply to professions and vocations as they apply to trades1. They do not, however, apply where the profits are calculated on the cash basis for small businesses2 (see B2.112).

Where an amount received by, or owed to, a

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