Income Tax (Trading and Other Income) Act 2005 section 148K

Application of Chapter to the cash basis

Section 148K identifies which special trade rules in Chapter 11 are switched off when a business calculates its profits using the cash basis.

• When using the cash basis, a number of the specialist profit calculation rules for specific trades and situations do not apply.
• The disapplied rules cover areas such as dealers in securities, mineral royalties and exploration, lease premium adjustments, and ministers of religion.
• Rules relating to intermediaries making deemed employment payments, managed service companies, pool betting duty, and waste disposal are also excluded under the cash basis.
• The specialist provisions for cemeteries and crematoria likewise do not apply to cash basis calculations.