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Home / Simons-Taxes /Business tax /Part B6 Property income and taxes /Division B6.2 Property businesses /Adjustments on change of basis of taxation of property business / B6.212B Cash basis—adjustments for capital allowances
Commentary

B6.212B Cash basis—adjustments for capital allowances

Business tax

Where a person enters the cash basis for unincorporated property businesses (see B6.202B) adjustments are required for capital allowances purposes1. This is because such businesses do not claim capital allowances (other than on cars), but are instead allowed a deduction from profits for certain capital expenditure (see B6.202D).

A person enters the cash basis if the profits are calculated on the cash basis for the tax year and in accordance with GAAP for the previous year2 (see B6.202C).

Where a person enters the cash basis and there was unrelieved qualifying expenditure relating to that business at the end of the basis period for the previous

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