Section 196 | Allowable deductions

(1)In calculating the amount on which tax is charged under this Chapter, deductions are allowed in accordance with—

(a)this section, and

(b)section 197,

from the amount which would otherwise be chargeable to tax under this Chapter.

(2)A deduction is allowed for a loss, expense or debit which, if the person carrying on the trade had not permanently ceased to do so—

(a)would have been deducted in calculating the profits of the trade for corporation or income tax purposes, or

(b)would have been deducted from or set off against the profits of the trade for corporation or income tax purposes,

but no deduction is allowed if the loss, expense or debit arises directly or indirectly from the cessation itself.

(3)No deduction for an amount is allowed under this section if the amount has been allowed under any other provision of the Tax Acts.