S34 Income Tax (Trading and Other Income) Act 2005 (ITTOIA 2005), S54 Corporation Tax Act 2009 (CTA 2009)

Payments not made for the purpose of the trade because that would have required them to be for keeping the trade going

The statutory test imposed by S34(1)(a) ITTOIA 2005 for unincorporated businesses and S54(1)(a) CTA 2009 for companies refers to the purposes of the trade, profession or vocation. Expenditure incurred for the purpose of going out of business, rather than for the purpose of carrying on the business, fails the statutory test.

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