Commentary

B6.212B Cash basis—adjustments for capital allowances

Business tax
Business tax | Commentary

B6.212B Cash basis—adjustments for capital allowances

Business tax | Commentary

B6.212B Cash basis—adjustments for capital allowances

Where a person enters the cash basis for unincorporated property businesses (see B6.202B) 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 expenditure (see B6.202D).

A person enters the cash basis if the profits are calculated on the cash basis for the tax year and in accordance with GAAP for the previous year2 (see B6.202C).

Where a person enters the cash basis and there was unrelieved qualifying expenditure relating to that business at

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