Income Tax (Trading and Other Income) Act 2005

236Change from realisation basis to mark to marketU.K.
This adran has no associated Nodiadau Esboniadol

(1)This section applies if there is a change of basis from—

(a)not recognising a profit or loss on an asset until the asset is realised, to

(b)bringing assets into account in each period of account at a fair value.

(2)So far as—

(a)a receipt within item 1 of step 1 in section 231 represents the fair value of an asset that is trading stock, or

(b)an expense within item 2 of that step relates to such an asset,

adjustment income or (as the case may be) an adjustment expense is treated as not arising until the period of account in which the value of the asset is realised.

(3)In the case of adjustment income, this is subject to any election under section 237 (election for spreading).

(4)In this section “trading stock” has the same meaning as in section 174.

Modifications etc. (not altering text)

C1S. 236 applied (6.4.2007 with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 524(5), 526(6), 1034 (with transitional provisions and savings in Sch. 2)