Section 271D | Calculation of profits on the cash basis ^F1

(1)In this Part, references to calculating the profits of a property business on the cash basis are to calculating the profits in accordance with subsections (2) and (3).

(2)In calculating the profits, receipts of the business are brought into account at the time they are received, and expenses of the business are brought into account at the time they are paid.

(3)Subsection (2) is subject to any adjustment required or authorised by law in calculating profits for income tax purposes.

(4)For provision about the application of Chapter 4 (profits of property businesses: lease premiums etc) in relation to profits calculated on the cash basis, see section 276A.

(5)For provision about the application of Chapter 5 (rules about deductions and receipts) in relation to profits calculated on the cash basis, see section 307A.

(6)The following provisions apply only where profits are calculated on the cash basis—

(a)section 272ZA (application of trading income rules: cash basis), and

(b)Chapter 7A (cash basis: adjustments for capital allowances).