1088 Restriction on deductions in computing profits

This section provides for —

• (1)(a) a general prohibition on deductions in calculating profits or gains for tax purposes except where a deduction is expressly authorised by the Income Tax Acts,
• (1)(b) a general prohibition on a deduction for annuities or other annual payments made for which the payer has already obtained relief (the exclusion of interest from this provision coupled with its exclusion from section 81(2)(l) ensures that business interest is allowable as a deduction in computing business profits or income), and
• (2) a general prohibition on deductions in computing profits or gains from both businesses and offices and employments for a reduction in capital employed or for losses sustained (specific relief for losses sustained in a trade, profession or employment is provided for by Part 12).

Relevant Date: Finance Act 2019