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BIM70038 | Cash basis: expenses: capital expenditure: Financial Assets

From HM Revenue & Customs · Business Income Manual

S33A(4)(f) ITTOIA 2005

In calculating the profits of a trade on the cash basis, no deduction is allowed for a financial asset.

A financial asset means any right under or in connection with

  • a financial instrument

  • an arrangement that is capable of producing a return that is economically equivalent to a return produced under any financial instrument

An arrangement includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).