{
  "url": "https://openlegislation.uk/income-tax-trading-and-other-income-act-2005/section-272",
  "json_url": "https://openlegislation.uk/income-tax-trading-and-other-income-act-2005/section-272.json",
  "legislation": "ukpga/2005/5",
  "legislation_title": "Income Tax (Trading and Other Income) Act 2005",
  "legislation_url": "https://openlegislation.uk/income-tax-trading-and-other-income-act-2005",
  "path": "section/272",
  "kind": "section",
  "number": "272",
  "heading": "Application of trading income rules: GAAP",
  "text": "(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(2) In relation to a property business whose profits are calculated in accordance with GAAP, the provisions of Part 2 (trading income) which apply as a result of section 271E(1) are limited to the following—\nIn Chapter 3 (basic rules)—\n. . .\n. . .\nsection 26\nlosses calculated on same basis as profits\nsection 27\nreceipts and expenses\nsection 28\nitems treated under CAA 2001 as receipts and expenses\nsection 28A\nmoney's worth\nsection 29\ninterest\nIn Chapter 4 (rules restricting deductions)—\nsection 33\ncapital expenditure\nsection 34\nexpenses not wholly and exclusively for trade and unconnected losses\nsection 35\nbad and doubtful debts\nsections 36 and 37\nunpaid remuneration\nsections 38 to 44\nemployee benefit contributions\nsections 45 to 47\nbusiness entertainment and gifts\nsections 48 to 50B\ncar ... hire\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\nsection 52\nexclusion of double relief for interest\nsection 53\nsocial security contributions\nsection 54\npenalties , interest and VAT surcharges and interest\nsection 55\ncrime-related payments\nsection 55A\nexpenditure on integral features\nIn Chapter 5 (rules allowing deductions)—\nsection 57\npre-trading expenses\nsections 58 and 59\nincidental costs of obtaining finance\n. . .\n. . .\nsection 69\npayments for restrictive undertakings\nsections 70 and 71\nseconded employees\nsection 72\npayroll deduction schemes: contributions to agents' expenses\nsections 73 to 75\ncounselling and retraining expenses\nsections 76 to 80\nredundancy payments etc.\nsection 81\npersonal security expenses\nsections 82 to 86\ncontributions to local enterprise organisations or urban regeneration companies\nsections 86A and 86B\ncontributions to flood and coastal erosion risk management projects\nsections 87 and 88\nscientific research\nsections 89 and 90\nexpenses connected with patents, designs and trade marks\nsection 91\npayments to Export Credits Guarantee Department\nsection 94A\ncosts of setting up SAYE option scheme or CSOP scheme\nsection 94AA\ndeductions in relation to salaried members of limited liability partnerships\nIn Chapter 5A (deductions allowable at a fixed rate)\nsection 94C\nexclusion of provisions of Chapter 5A for firms with partner who is not an individual\nsections 94D to 94G\nexpenditure on vehicles\nIn Chapter 6 (receipts)—\nsection 96\ncapital receipts\nsection 97\ndebts incurred and later released\nsection 104\ndistribution of assets of mutual concerns\nsection 105\nindustrial development grants\nsection 106\nsums recovered under insurance policies etc.\nIn Chapter 7 (gifts to charities etc.)—\nsection 109\nreceipt by donor or connected person of benefit attributable to certain gifts\nIn Chapter 10A (long funding leases)—\nSections 148A to 148J\nLeases of plant or machinery: special rules for long funding leases\nIn Chapter 11 (other specific trades)—\nsection 155\nlevies and repayments under FISMA 2000\nIn Chapter 13 (deductions from profits)—\nsections 188 to 191\nunremittable amounts\n(3) In those provisions the expression “this Part” is to be read as a reference to those provisions as applied by subsection (2) and to the other provisions of Part 3.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "S. 272(1) omitted (16.11.2017) (with effect in accordance with Sch. 2 para. 64 of the amending Act) by virtue of Finance (No. 2) Act 2017 (c. 32), Sch. 2 para. 16(3)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in s. 272(2) substituted (16.11.2017) (with effect in accordance with Sch. 2 para. 64 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 2 para. 16(4)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "S. 272(2) entry omitted (16.11.2017) (with effect in accordance with Sch. 2 para. 64 of the amending Act) by virtue of Finance (No. 2) Act 2017 (c. 32), Sch. 2 para. 16(5)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Words in s. 272(2) Table inserted (with effect in accordance with s. 71(7) of the amending Act) by Finance Act 2016 (c. 24), s. 71(3)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Word in s. 272(2) Table substituted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by Finance Act 2009 (c. 10), Sch. 11 para. 41(a)"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Words in s. 272(2) Table omitted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 11 para. 41(b)"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "S. 272(2) Table: entry repealed (6.4.2007 with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss, 1027, 1031, 1034, Sch. 1 para. 507, {Sch. 3 Pt. 1} (with transitional provisions and savings in Sch. 2)"
    },
    {
      "type": "F",
      "label": "F8",
      "text": "Words in s. 272(2) substituted (1.1.2023 for specified purposes, 6.4.2024 for specified purposes, 1.4.2026 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 32; S.I. 2022/1278, reg. 2(3)(4)(b); S.I. 2024/440, reg. 2; S.I. 2026/370, reg. 3"
    },
    {
      "type": "F",
      "label": "F9",
      "text": "Words in s. 272(2) Table inserted (with effect in accordance with s. 73(6) of the amending Act) by Finance Act 2008 (c. 9), s. 73(5)"
    },
    {
      "type": "F",
      "label": "F10",
      "text": "Words in s. 272(2) Table omitted (with effect in accordance with s. 72(4) of the amending Act) by virtue of Finance Act 2016 (c. 24), s. 72(2)(b)"
    },
    {
      "type": "F",
      "label": "F11",
      "text": "Words in s. 272(2) Table inserted (with effect in accordance with Sch. 5 para. 9 of the amending Act) by Finance Act 2015 (c. 11), Sch. 5 para. 2"
    },
    {
      "type": "F",
      "label": "F12",
      "text": "Words in s. 272(2) Table inserted (1.4.2010) (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 7 para. 29 (with Sch. 9 paras. 1-9, 22)"
    },
    {
      "type": "F",
      "label": "F13",
      "text": "Words in s. 272(2) Table inserted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 17 paras. 3(3), 6"
    },
    {
      "type": "F",
      "label": "F14",
      "text": "Words in s. 272(2) Table inserted (with effect in accordance with s. 36(8) of the amending Act) by Finance Act 2018 (c. 3), s. 36(4)"
    },
    {
      "type": "F",
      "label": "F15",
      "text": "S. 272(2) Table: entry relating to Ch. 10A (long funding leases) inserted (with effect as mentioned in Sch. 8 para. 15 of the amending Act) by Finance Act 2006 (c. 25), s. 81, Sch. 8 para. 14(2)"
    },
    {
      "type": "F",
      "label": "F16",
      "text": "S. 272 heading substituted (16.11.2017) (with effect in accordance with Sch. 2 para. 64 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 2 para. 16(2)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2005/5/section/272",
    "retrieved_at": "2026-10-29T09:16:32.370392+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}