Annex 1: Minor Changes in the Law Change 83: Car or motor cycle hire: section 1251 and Schedule 1 Income tax: “corresponding provisions”
Section 578A of ICTA applies to:
	a trading deduction;
	a management expense; and
	an expense of an insurance company.
A rebate or release of a debt is restricted under subsection (4) however the original deduction was given. Sections 56(3) and (5) and 1251(3) and (5) of this Act make this clear by referring to a “corresponding provision”. But section 48(4) of ITTOIA deals only with the case where the original deduction (as a trading expense) was restricted under that section. Schedule 1 to this Act amends section 48(3) of ITTOIA, and introduces a new subsection (4A), so that it applies also to deductions previously given as a management expense or as an expense of an insurance company.