Income Tax (Trading and Other Income) Act 2005 section 93

Allocation of expenses

Section 93 sets out how expenses connected with foreign trades should be allocated when a trader carries on more than one foreign trade.

• Expenses relating to premises, staff or the trader's own presence at a foreign location are allocated to the relevant foreign trade, and shared on a just and reasonable basis where more than one foreign trade is carried on at that location.
• Travel expenses relating to absences for the purpose of more than one foreign trade must also be split between those trades on a just and reasonable basis.
• Expenses of travelling between two locations are allocated to the trade at the destination if that is a foreign trade; otherwise they are allocated to the foreign trade at the place of departure.
• Where more than one foreign trade is carried on at the relevant destination or departure point, travel expenses are divided between those trades on a just and reasonable basis.