243A Restriction of relevant charges on income.

(1) In this section—

“relevant trading charges on income”, in relation to an accounting period of a company, means the charges on income paid by the company in the accounting period wholly and exclusively for the purposes of a trade carried on by the company, other than so much of those charges as are charges on income paid for the purposes of an excepted trade within the meaning of section 21A;

“relevant trading income”, in relation to an accounting period of a company, means the trading income of the company for the accounting period (not being income chargeable to tax under Case III of Schedule D) other than so much of that income as is income of an excepted trade within the meaning of section 21A.

(2) Notwithstanding section 243, relevant trading charges on income paid by a company in an accounting period shall not be allowed as deductions against the total profits of the company for the accounting period.

(3) ^[5]>Subject to section 454, where^<[5][5]>Where^<[5] a company pays relevant trading charges on income in an accounting period and, apart from subsection (2), those charges would be allowed as deductions against the total profits of the company for the accounting period, those charges shall be allowed as deductions against—

(b) relevant trading ^[2]>income,^<[2][2]>income, and^<[2]

of the company for the accounting period as reduced by any amount set off against that income under section 396A.