Commentary

B2.301 What are the general rules governing the deductibility of trading expenses?

Business tax
Business tax | Commentary

B2.301 What are the general rules governing the deductibility of trading expenses?

Business tax | Commentary

Division B2.3     Trading expenses—general principles of deductibility

For updates affecting this Division please see Part B0 Updates

Introduction

B2.301 What are the general rules governing the deductibility of trading expenses?

The profits of a trade must be calculated in accordance with generally accepted accounting practice (see B2.102), subject to any adjustment required or authorised by law in calculating profits for tax purposes1. If, however, there is specific statutory authority to prohibit the deduction of a particular expense for tax purposes, the deduction may not be made even though it would be correct to deduct it as a matter of accounting principle.

This rule was stated

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