Income Tax Act 2007 section 837E

Allowable deductions

Section 837E sets out the rules for deducting losses, expenses and debits from amounts that would otherwise be chargeable to income tax on winding-up receipts of a former deposit-taking business.

• Qualifying losses, expenses and debits incurred during or before the tax year may be deducted from the amount otherwise chargeable to income tax under this Chapter
• Only items that would have been deductible in calculating or set against the trade's profits for tax purposes — had the deposit-taking trade not permanently ceased — qualify for relief
• No deduction is available for any loss, expense or debit that arises directly or indirectly from the cessation of the trade itself
• No deduction is permitted for any amount that has already been relieved under this section or any other provision of the Tax Acts