BIM42070 - Deductions: general: permissive rules

The following table summarises the general provisions which permit deductions in computing trade profits and indicates where more detailed guidance may be found. These provisions are, however, subject to the priority rules at BIM42080.

Income Tax (Trading and Other Income) Act 2005 section

Corporation Tax Act 2009 section

Deduction permitted

Further guidance

57

61

Expenditure incurred before start of a trade.

BIM46350 onwards

57A

-

Certain expenditure on food or drink for consumption by the trader. Income Tax only.

BIM47705

58, 59

-

Incidental costs of obtaining loan finance. Income Tax only; the loan relationship regime applies to companies (see CFM30000 onwards).

BIM45800 onwards

60-67

62-67

Premiums payable by a trader for business premises where the premium is treated as a property business receipt by the landlord.

BIM46250 onwards

68

68

Replacement and alteration of trade tools.

BIM46935

69

69

Payments for restrictive undertakings.

BIM47005

70

70

Expenditure on employees seconded to charities or certain educational bodies.

BIM47120

72

72

Charitable donations: employer's contributions to agent's costs of a payroll giving scheme.

BIM45195

73

73

Expenditure on counselling and other outplacement services for employees.

BIM47217

74, 75

74, 75

Expenditure on qualifying courses for retraining past or present employees for future employment elsewhere.

BIM47080

76-80

76-81

Statutory redundancy payments and additional employer's payments.

BIM47200 onwards

81

-

Certain expenditure on security assets or security services for an individual where a special threat arises by virtue of the trade carried on by him.

BIM47300 onwards

82-86

82-86

Contributions to local enterprise organizations and urban regeneration companies.

BIM47600 onwards

87

87

Expenditure on research and development.

-

88

88

Payments to research associations, universities etc for scientific research.

-

89, 90

89, 90

Fees or expenses on obtaining or renewing grants of patents, trademarks etc.

BIM45950 onwards & CA75310

91

91

Payments to the Export Credits Guarantee Department.

-

92-94

-

Travel expenses connected with foreign trades. Income Tax only.

BIM47712

94A

999, 1000

Expenses of setting up certain employee share schemes. Companies only.

BIM44020

155

92

Levies etc paid under the Financial Services and Markets Act 2000.

-

For the deduction of contributions to registered pension schemes see BIM46000 onwards.