Commentary

D7.560 Calculating the expense deduction

Corporate tax
Corporate tax | Commentary

D7.560 Calculating the expense deduction

Corporate tax | Commentary

D7.560 Calculating the expense deduction

The rules in this division apply for accounting periods beginning before 1 January 2013. For accounting periods beginning on or after 1 January 2013 see Division D7.4.

Having established the expenses payable for the accounting period in question, it is necessary to follow an eight step process to arrive at the expense deduction for relief against the company's BLAGAB income and gains1.

Step 1 requires that the calculation begins with the expenses payable attributable to BLAGAB and referable to the accounting period in question (see D7.557). Step 1 also includes expenses that do not fall within ICTA 1988, s 76 itself but which are deemed to be expenses payable by another provision of the Taxes Acts for instance levies (and repayments of such levies) under the Financial Services and Markets Act 2000 to the extent that they are referable to BLAGAB2.

Step 2 removes from the calculation expenses which are relieved elsewhere as deductions in computing

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