Income Tax (Trading and Other Income) Act 2005 (c. 5)

Part 2 U.K. Trading income

Chapter 15 U.K. Basis periods

Modifications etc. (not altering text)

C1 Pt. 2 Ch. 15 excluded (14.2.2006 with effect as mentioned in reg. 1(2) of the amending S.I.) by S.I. 1997/2681 reg. 6(1)(a) as amended by The Lloyd's Underwriters (Scottish Limited Partnerships) (Tax) (Amendment) Regulations 2006 (S.I. 2006/111), reg. 8

Slight variations in accounting date U.K.

212 Consequence of treating middle date as accounting date U.K.

(1) If—

(a) a date (“the middle date”) is treated under section 211 as the accounting date in a tax year (“the current tax year”),

(b) the basis period for the current tax year would otherwise be that given by the general rule in section 198, and

(c) subsection (2) or (3) applies,

the basis period for the current tax year begins immediately after the end of the basis period for the previous tax year and ends with the middle date.

(2) This subsection applies if—

(a) the accounting date in the previous tax year was not determined under section 211, and

(b) that accounting date was one of the 7 (or 8) dates on which the day in the current tax year to which accounts are drawn up is capable of falling.

(3) This subsection applies if—

(a) the accounting date in the previous tax year was determined under section 211, and

(b) the accounting date in the current tax year is the same as the accounting date in the previous tax year.