Annex 1: Minor changes in the law made by the Act: Change 12: Trade profits: exclusion of double relief for interest: final variation of claim: section 52
This change makes clear when a claim under section 353 of ICTA is finally determined for the purposes of rewriting section 368(4) of ICTA.
Section 353 of ICTA provides for interest to be claimed as a relief. In limited circumstances that relief may also qualify as a deduction in calculating trade profits. Section 368(4) of ICTA provides that a trade deduction is not allowed if relief has been given under section 353 of ICTA.
Section 368(4) of ICTA is subject to section 368(6) of ICTA. That subsection provides that the references to relief given or a deduction allowed refer to relief given or a deduction allowed on a claim or in an assessment that has been finally determined.
The term “finally determined” does not fit well with Self Assessment. Section 52(5) makes clear that it means when the claim can no longer be varied. This wording is based on section 43C(4) of TMA.
This change has no implications for the amount of tax paid, who pays it or when. It affects (in principle but not in practice) only administrative matters.