CTA09/S2 (4), S35, S209, S299(1), S752, S933(1), S969, S972 (1), 974 (1), S977 (1), S979 (1), S1305; TCGA92/S8

The old rule was that income is computed in accordance with IT principles and chargeable gains are computed in accordance with CGT principles. This rule was subject to any modifications in the Taxes Acts. Tax Law Rewrite, however, applies separate codes to IT and CT. CTA09/S2 (4) provides that the charge to CT on income is in accordance with the Corporation Tax Acts. Loan relationships are now dealt with in CTA09/PART5 and PART6.

For CT purposes CAA01:

allows capital allowances as deductions in computing profits, and

treats balancing charges as additions to profits.

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