Commentary

B6.202D Deductions under the cash basis

Business tax
Business tax | Commentary

B6.202D Deductions under the cash basis

Business tax | Commentary

B6.202D Deductions under the cash basis

There are specific rules that relate to certain deductions under the cash basis1. The rules for the deduction of capital expenditure are similar to those relating to the cash basis for trading income (see B2.112). Deduction of capital expenditure is allowed provided it is not one of the following2:

  1.  

    •     capital expenditure on, or in connection with, the acquisition or disposal, or potential acquisition or disposal3, of a business or part of a business

  2.  

    •     capital expenditure on, or in connection with, education or training

  3.  

    •     capital expenditure incurred on, or in connection with the provision, alteration or disposal, or potential provision, alteration or disposal, of land. However, this does not prevent a deduction being available on the installation of a depreciating property fixture, provided it is not expenditure on the provision of:

    1.  

      –     a building; wall, floor, ceiling, door, gate, shutter, window, or

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