Taxes Consolidation Act 1997 section 1088

Restriction on deductions in computing profits

Section 1088 restricts the deductions that may be claimed in computing profits or gains for income tax purposes, limiting them to those expressly authorised by the Income Tax Acts.

• No deduction may be made in computing profits or gains for income tax unless it is expressly provided for by the Income Tax Acts.
• No deduction is allowed for annuities or other annual payments (other than interest) paid out of profits or gains where the payer is entitled to deduct income tax at source from the payment.
• No deduction is allowed in computing profits or gains from property, offices, or employments for any diminution of capital employed in a trade, profession, or employment.
• No deduction is allowed in computing such profits or gains for losses sustained in a trade, profession, or employment, as separate loss relief provisions apply under Part 12.