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D7.459 BLAGAB management expenses

The calculation of the BLAGAB adjusted management expenses required at Step 5 of the calculation of I-E profit (see D7.435) also follows a step by step process¹.

Step 1 requires that the calculation begins with the ordinary BLAGAB management expenses referable to the accounting period in question. Step 1 also includes expenses that do not fall within the meaning of ordinary BLAGAB management expenses but which are treated as such by virtue of qualifying for relief under another provision of the Taxes Acts and excludes amounts that are deductible under other relevant rules.

An amount is deductible under another relevant rule if:

1. Ìý

   •ÌýÌýÌýÌý it is deductible in calculating BLAGAB miscellaneous income (FA 2012, s 92(3))

2. Ìý

   •ÌýÌýÌýÌý it is deductible in calculating the profits of a property business (in which case relief is given in that computation and to include the expense as a BLAGAB management expense would result in double relief), and

3. Ìý

   •ÌýÌýÌýÌý it is deductible in calculating income from letting of UK mineral rights²

Step