The Tax Credits (Definition and Calculation of Income) Regulations 2002

Trading income

6.  The claimant’s trading income is—

(a) the amount of his taxable profits for the tax year from—

(i) any trade carried on in the United Kingdom or elsewhere;

(ii) any profession or vocation the income from which does not fall under any other provisions of these Regulations; or

(b) if the claimant is a partner in the trade, profession or vocation, his taxable profit for the year arising from his share of the partnership’s trading or professional income.

Here “taxable profits” has the same meaning as it has for Cases I, II and V of Schedule D but disregarding sections 95A and section 96 of the Taxes Act (averaging of fluctuating profits: rules for creative artists, farmers and market gardeners)(1).

(1)

Section 95A was inserted by section 71(1) of the Finance Act 2001 (c. 9). Section 96 was amended by sections 196, 199, 214(1) and 216 of the Finance Act 1994, section 128(3) and (11) of the Finance Act 1996 and paragraph 1 of Schedule 7 to the Finance Act 1998.