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pim7020 | Archived guidance: trading income rules: application of trading income rules: IT to 2004-05 and CT to 2008-09

From HM Revenue & Customs · Property Income Manual

All the rules in ICTA88/S74 to ICTA88/S99 are applied to Schedule A as well as to Schedule D Case I by ICTA88/S21A (1) (as amended by FA98/SCH5) except:

  • Section 82 (interest paid to non-residents), see PIM1100 onwards.

  • Section 87 (lease premium relief for traders), lease premium relief for Schedule A purposes is given by Section 37.

  • Section 96 (farmers’ averaging), see PIM1100 onwards.

  • Section 98 (tied premises).

Certain other Case I rules also apply to Schedule A. The table below sets out which rules these are, the statutory authority for applying them to Schedule A, and where you can find further guidance (where appropriate).

Statute applied to Schedule AAuthorityInstructionsWhen from
Post cessation receipts and expenditure, ICTA88/S103 - S106, S108, S109A, S110ICTA88/S21BBIM80500 onwards6 April 1995 (IT) \n1 April 1998 (CT)
Cessation, treatment on a complete change of partners ICTA88/S113, (as amended by FA94)ICTA88/S21BBIM72200 onwards6 April 1995 (IT)
Effect of company beginning or ceasing to carry on trade, ICTA88/S337 (1)ICTA88/S21BCTM02100 onwards1 April 1998 (CT)
Relief for pre-trading expenditure, ICTA88/S401ICTA88/S21BBIM46350 onwards6 April 1995 (IT) \n1 April 1998 (CT)
Business entertainment expenses, ICTA88/S577ICTA88/S21A (2)BIM45000 onwards6 April 1998 (IT) \n1 April 1998 (CT)
Expenditure involving crime, ICTA88/S577AICTA88/S21A (2)BIM43100 onwards6 April 1998 (IT) \n1 April 1998 (CT)
Redundancy payments ICTA88/S579 and S580ICTA88/S21A (2)BIM47200 onwards6 April 1988 (IT) \n1 April 1998 (CT)
Relief for the cost of training employees, ICTA88/S588 - S589ICTA88/S21A (2)BIM470806 April 1995 (IT) \n1 April 1998 (CT)
Relief for the cost of counselling employees, ICTA88/S589A - S589BICTA88/S21A (2)BIM470606 April 1995 (IT) \n1 April 1998 (CT)
Consideration for restrictive undertakings FA88/S73 (2)ICTA88/S21A (2)BIM470056 April 1998 (IT) \n1 April 1998 (CT)
Deductions in respect of certain emoluments, FA89/S43ICTA88/S21A (2)BIM47100 onwards6 April 1998 (IT) \n1 April 1998 (CT)
Expenses in connection with non-approved retirement benefit schemes, FA89/S76ICTA88/S21A (2)IM8412 - IM84156 April 1998 (IT) \n1 April 1998 (CT)
Expenses in connection with security, FA89/S112 - S113ICTA88/S21A (2)BIM47300 onwards6 April 1998 (IT) \n1 April 1998 (CT)
Computation of profits and losses, FA98/S42 and FA98/S46 (1) - (2)ICTA88/S21A (2)BIM31000 onwards6 April 1998 (IT) \n1 April 1998 (CT)
Change of accounting basis, FA98/S44 and SCH6ICTA88/S21BBIM34000 onwards6 April 1998 (IT) \n1 April 1998 (CT)
Expenditure on remediation of contaminated land, FA01/SCH22ICTA88/S21A (5)CIRD60000 onwards1 April 2001 (CT)