Section 54 — Corporation Tax Act 2009: Expenses not wholly and exclusively for trade and unconnected losses

Expenses not wholly and exclusively for trade and unconnected losses 54 1 In calculating the profits of a trade, no deduction is allowed for—

a expenses not incurred wholly and exclusively for the purposes of the trade, or b losses not connected with or arising out of the trade.

2 If an expense is incurred for more than one purpose, this section does not prohibit a deduction for any identifiable part or identifiable proportion of the expense which is incurred wholly and exclusively for the purposes of the trade.