Income Tax (Trading and Other Income) Act 2005 section 56

Professions and vocations

Section 56 confirms that the trade profit rules in this chapter apply equally to professions and vocations, with a small number of specific exceptions.

• The rules for calculating trade profits in this chapter apply to professions and vocations in the same way as they apply to trades.
• The exceptions are sections 87 to 90, which deal with scientific research expenses and expenses connected with patents, designs and trade marks — these do not automatically extend to professions and vocations.
• A further exception is section 97A, which concerns the cash basis treatment of trading stock value when a trade ceases.
• This section removes the need for each individual rule in the chapter to state separately that it covers professions and vocations as well as trades.