The following rules allowing expenses do not apply to businesses using the cash basis:

tenants under taxed leases – see ¶216-350; and

prior to its abolition from 6 April 2016, replacement and alteration of trade tools – see ¶210-150.

Loan interest

Where a deduction for loan interest would be disallowed under ITTOIA 2005, s. 51A(1) (see ¶206-489) or because (and only because) it is not an expense wholly and exclusively for the trade, a deduction is allowed of up to £500.

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