Income Tax Act 2007 section 575

Allowable deductions: restriction on double-counting

Section 575 prevents the same amount from being deducted more than once when calculating whether an individual has made a loss on a transaction in deposits.

• When calculating a loss on a deposit transaction, certain amounts are allowable as deductions against the income received.
• However, any amount that has already been deducted in one calculation cannot be deducted again in another calculation relating to the same or a different transaction.
• This anti-double-counting rule ensures that relief for expenditure or costs is given only once, even where multiple transactions or calculations might otherwise permit the same deduction.
• The rule originated from paragraph 2A(1B) of Schedule 23A to the Income and Corporation Taxes Act 1988 and was rewritten into the Income Tax Act 2007.

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