BIM42070 | Deductions: general: permissive rules
From HM Revenue & Customs · Business Income Manual
The following table summarises the general provisions which permit deductions in computing trade profits and indicates where more detailed guidance may be found. These provisions are, however, subject to the priority rules at .
| section | section | Deduction permitted | Further guidance |
|---|---|---|---|
| 57 | 61 | Expenditure incurred before start of a trade. | onwards |
| 57A | - | Certain expenditure on food or drink for consumption by the trader. Income Tax only. | |
| 58, 59 | - | Incidental costs of obtaining loan finance. Income Tax only; the loan relationship regime applies to companies (see onwards). | onwards |
| 60-67 | 62-67 | Premiums payable by a trader for business premises where the premium is treated as a property business receipt by the landlord. | onwards |
| 68 | 68 | Replacement and alteration of trade tools. | |
| 69 | 69 | Payments for restrictive undertakings. | |
| 70 | 70 | Expenditure on employees seconded to charities or certain educational bodies. | |
| 72 | 72 | Charitable donations: employer's contributions to agent's costs of a payroll giving scheme. | |
| 73 | 73 | Expenditure on counselling and other outplacement services for employees. | |
| 74, 75 | 74, 75 | Expenditure on qualifying courses for retraining past or present employees for future employment elsewhere. | |
| 76-80 | 76-81 | Statutory redundancy payments and additional employer's payments. | onwards |
| 81 | - | Certain expenditure on security assets or security services for an individual where a special threat arises by virtue of the trade carried on by him. | onwards |
| 82-86 | 82-86 | Contributions to local enterprise organizations and urban regeneration companies. | onwards |
| 87 | 87 | Expenditure on research and development. | - |
| 88 | 88 | Payments to research associations, universities etc for scientific research. | - |
| 89, 90 | 89, 90 | Fees or expenses on obtaining or renewing grants of patents, trademarks etc. | onwards & |
| 91 | 91 | Payments to the Export Credits Guarantee Department. | - |
| 92-94 | - | Travel expenses connected with foreign trades. Income Tax only. | |
| 94A | 999, 1000 | Expenses of setting up certain employee share schemes. Companies only. | |
| 155 | 92 | Levies etc paid under the Financial Services and Markets Act 2000. | - |
For the deduction of contributions to registered pension schemes see onwards.