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Section 334C Unrelieved qualifying expenditureF1

(1)

This section applies if—

(a)

a person carrying on a property business enters the cash basis for a tax year (“the current tax year”), and

(b)

the person would, apart from section 59(4A) of CAA 2001, have unrelieved qualifying expenditure relating to F2the property business to carry forward from the chargeable period which is the previous tax year.

(2)

But this section does not apply if section 334D applies.

(3)

In calculating the profits of the property business for the current tax year, a deduction is allowed for any cash basis deductible amount of the expenditure relating to F3the property business.

(4)

A “cash basis deductible amount” of the expenditure means any amount of the expenditure for which a deduction would be allowed in calculating the profits of the property business on the cash basis on the assumption that the expenditure was paid in the current tax year.

(5)

Any cash basis deductible amount of the expenditure is to be determined on such basis as is just and reasonable in all the circumstances.

(6)

In this section—

  • F4...

  • “unrelieved qualifying expenditure” means unrelieved qualifying expenditure for the purposes of Part 2 of CAA 2001 (see section 59(1) and (2) of that Act).

Annotations

Textual amendments

F1

Ss. 334A-334E and cross-headings inserted (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. 29

F2

Words in s. 334C(1)(b) substituted (for the purposes of income tax in relation to the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), Sch. 5 paras. 2(9)(a), 12(1) (with Sch. 5 paras. 15, 18(4), 19)

F3

Words in s. 334C(3) substituted (for the purposes of income tax in relation to the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), Sch. 5 paras. 2(9)(b), 12(1) (with Sch. 5 paras. 15, 18(4), 19)

F4

Words in s. 334C(6) omitted (for the purposes of income tax in relation to the tax year 2025-26 and subsequent tax years) by virtue of Finance Act 2025 (c. 8), Sch. 5 paras. 2(9)(c), 12(1) (with Sch. 5 paras. 15, 18(4), 19)