Income Tax (Trading and Other Income) Act 2005 section 68

Replacement and alteration of trade tools

Section 68 provides a deduction for the cost of replacing or altering trade tools where the expenditure would otherwise be disallowed solely because it is capital in nature.

• A deduction is allowed for the cost of replacing or altering tools, implements, utensils and other articles used in a trade.
• The deduction applies only where the sole reason for disallowance would be that the expenditure is capital rather than revenue in nature.
• Expenditure on repairing trade tools and premises remains deductible under ordinary revenue expenditure rules and is not affected by this section.
• The section was amended by Finance Act 2016, section 72(1)(a).