[33A Cash basis: capital expenditure]
Income Tax (Trading and Other Income) Act 2005 (2005 c 5) | Legislation

[33A  Cash basis: capital expenditure]

[(1)     This section applies in relation to the calculation of the profits of a trade on the cash basis.

(2)     No deduction is allowed for an item of a capital nature incurred on, or in connection with, the acquisition or disposal of a business or part of a business.

(3)     No deduction is allowed for an item of a capital nature incurred on, or in connection with, education or training.

(4)     No deduction is allowed for an item of a capital nature incurred on, or in connection with, the provision, alteration or disposal of—

(a)     any asset that is not a depreciating asset (see subsections (6) and (7)),

(b)     any asset not acquired or created for use on a continuing basis in the trade,

(c)     a car (see subsection (14)),

(d)     land,

(e)     a non-qualifying intangible asset (see subsections (8) to (11)), or

(f)     a financial asset (see subsection (12)).

(5)     But subsection (4)(d) does not prevent a deduction being made for expenditure that—

(a)     is incurred on the

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