ITTOIA 2005, s. 307A - 307F are inserted into Part 3, Ch. 5 by Finance (No. 2) Act 2017, for 2017-18 and subsequent tax years.

These introduce:

(a)s. 307B (cash basis: capital expenditure),

(b)s. 307C (cash basis: deduction for costs of loans) and

(c)s. 307D (cash basis: modification of deduction for costs of loans).

Further, provision about capital receipts in certain cases where the profits of a property business are calculated on the cash basis or have previously been calculated on the cash basis, is made in s. 307E and s. 307F.

(ITTOIA 2005, s. 307A)

These special rules for calculating profits on the cash basis are dealt with in turn.

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