BIM72050 - Cash basis: rules not applied in calculating profits

In calculating the profits of a trade using the cash basis, certain rules do not apply, and some claims and reliefs are not available.

Claims, elections and reliefs not available when using the cash basis:

  • Herd basis rules (see聽BIM55501)
  • Averaging profits of farmers and creative artists (see聽BIM84050)
  • Compensation for compulsory slaughter of animals (see聽BIM55180)
  • Relief for unremittable amounts

Special rules not applied in calculating profits on the cash basis:

  • Sound recordings (see聽BIM56200)
  • Certain telecommunication rights (Chapter 9 or Part 2 ITTOIA 2005)
  • Long-funding leases (Chapter 10A of Part 2 ITTOIA 2005)
  • Changes in trading stock (see聽BIM33630)
  • Disposal and acquisition of know-how (Chapter 14 of Part 2 ITTOIA 2005)
  • Oil activities (Chapter 16A of Part 2 ITTOIA 2005)