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Legislation
Income Tax (Trading and Other Income) Act 2005

Crossheading Basis of accounting

  • Section 24A Cash basis to apply by default
  • Section 25 Generally accepted accounting practice
  • Section 25A Cash basis for small businesses
  • Section 25B Excluded trades
  • Section 25C Election for profits to be calculated in accordance with GAAP
  • Section 26 Losses calculated on same basis as profits
  1. Basis of accounting
  2. Losses calculated on same basis as profits

Section 26 | Losses calculated on same basis as profits

From legislation.gov.uk

(1)The same rules apply for income tax purposes in calculating losses of a trade as apply in calculating profits.

(2)This is subject to any express provision to the contrary.

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