BIM70050 - Cash basis: rules not applied in calculating profits
In calculating the profits of a trade using the cash basis, certain rules do not apply and some claims and reliefs are not available.
Claims, elections and reliefs not available when using the cash basis
- Herd basis rules (see BIM55501)
- Averaging profits of farmers and creative artists (see BIM84050)
- Compensation for compulsory slaughter of animals (see BIM55180)
- Relief for unremittable amounts
Special rules not applied in calculating profits on the cash basis
- Sound recordings (see BIM56200)
- Certain telecommunication rights (Chapter 9 or Part 2 ITTOIA 2005)
- Long-funding leases (Chapter 10A of Part 2 ITTOIA 2005)
- Changes in trading stock (see BIM33630)
- Disposal and acquisition of know-how (Chapter 14 of Part 2 ITTOIA 2005)
- Oil activities (Chapter 16A of Part 2 ITTOIA 2005)