Paragraph 26

(1)

This paragraph applies if—

(a)

fees have been incurred, but not paid, for the purposes of a trade in connection with any of the matters mentioned in section 89 or 90,

(b)

the fees were incurred in a period of account no part of which falls in the basis period for the tax year 2005-06 or a subsequent tax year, and

(c)

the fees have not been taken into account in calculating the profits of the trade of any tax year.

(2)

A deduction is allowed for the fees in calculating the profits of the period of account in which they are paid.