Section 617 | Deductions in calculating certain income charged

(1)This section applies for calculating the amount of income charged under this Chapter other than annual payments.

(2)The following sections apply as they apply for the purpose of calculating the profits of a trade, profession or vocation—

(a)section 147 (expenditure and receipts in respect of relevant telecommunication rights treated as revenue in nature), and

(b)section 148 (credits or debits arising from revaluation in respect of relevant telecommunication rights).

(3)Expenses wholly and exclusively incurred for the purpose of generating the income are deductible.

(4)If an expense is incurred for more than one purpose, a deduction may be made for any identifiable part or identifiable proportion of the expense which is incurred wholly and exclusively for the purpose of generating the income.

(5)Expenses which would not have been allowable as a deduction in calculating the profits of a trade, if they had been incurred for its purposes, are not deductible under this section.

(6)Expenses for which any kind of relief is given under any other provision of the Income Tax Acts are not deductible under this section.

(7)The frequency with which payments are made is ignored in determining whether they are annual payments for the purposes of this Chapter.