The following rules restricting deductions do not apply to businesses using the cash basis:

capital expenditure – see ¶207-500ff.;

bad and doubtful debts – see ¶211-000;

unpaid remuneration – see ¶213-850;

employee benefit contributions where profits are calculated before the end of the nine-month period (ITTOIA 2005, s. 43);

car hire – see ¶212-025; and

integral features – see ¶217-675.

There are specific expense restrictions that apply only to businesses using the cash basis:

(1)Capital expenditure can only be deducted according to the rules set out below;

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