Cash basis: treatment of capital

This clause replaces a general prohibition on deductions for capital expenditure in calculating taxable profits using the cash basis, with a more focused and limited prohibition on deductions for certain specified capital expenditure.

Comments about this legislation should be send to John Banks by email: john.banks1@hmrc.gsi.gov.uk by 28 February 2017.

Secondary legislation on increasing the cash basis thresholds for unincorporated businesses has also been published.