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Home / Simons-Taxes /Business tax /Part B2 How are trade profits and losses calculated? /Division B2.4 Trading expenses—specific items /Which expenses may be deductible? / B2.419 Contracts—compensation for variation
Commentary

B2.419 Contracts—compensation for variation

Business tax

Payments made in connection with the variation of a contract must be examined carefully to determine whether there is any capital connection with the payment, which would be disallowable for trading purposes. There are many cases dealing with this matter, some of which are outlined below.

Deductible payments for varying a contract

The following have been held

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