Annex 1: Minor Changes in the Law Change 40: Trading income: deductions for unremittable amounts: sections 172 to 175
This change gives statutory effect to ESC C34 (tax concessions on overseas debts). In doing this the Act makes a number of changes to the approach in the extra-statutory concession.
It brings the income tax and corporation tax codes back into line.
Chapter 12 of Part 3 of this Act gives statutory effect to the extra-statutory concession, extending relief for trade debts.
This change is in taxpayers’ favour in principle. But it is expected to have no practical effect as it is in line with current practice.
This change has no implications for the amount of tax due, who pays it or when. It affects (in principle and in practice) only administrative matters.
This change is in taxpayers’ favour in principle and may benefit some in practice. But the numbers affected and the amounts involved are likely to be small.