SCHEDULES
F1SCHEDULE 1B Claims for relief involving two or more years
Relief for fluctuating profits of farming etc.
3
1
This paragraph applies where a person who is or has been carrying on F2a qualifying trade, profession or vocation (within the meaning of Chapter 16 of Part 2 of ITTOIA 2005) claims that Chapter 16 of Part 2 of ITTOIA 2005 shall have effect in relation to his profits from that tradeF3, profession or vocation
F4a
in the case of a two-year claim, for two consecutive years of assessment, and
b
in the case of a five-year claim, for five consecutive years of assessment.
2
The claim shall relate to F5the last of the two or five years.
3
Subject to sub-paragraph (4) below, in so far as the claim relates to the profits of F6an earlier year, the claim shall be for an amount equal to the difference between—
a
the amount in which the person is chargeable to tax for the earlier year (“amount A”); and
b
the amount in which he would be so chargeable on the assumption that effect could be, and were, given to the claim in relation to that year (“amount B”).
4
Where effect has been given to one or more associated claims, amounts A and B above shall each be determined on the assumption that effect could have been, and had been, given to the associated claim or claims in relation to the earlier year.
5
6
Where this paragraph applies twice in relation to the same year of assessment, the increase or reduction in the amount of tax payable for that year which is required by sub-paragraph (5) above on the earlier application shall be disregarded in determining amounts A and B above for the purposes of the later application.
F97
In this paragraph—
“two-year claim” means a claim under section 222 of ITTOIA 2005;
“five-year claim” means a claim under section 222A of ITTOIA 2005.
Sch. 1B inserted (with effect in accordance with s. 128(11) of the amending Act) by Finance Act 1996 (c. 8), s. 128(2), Sch. 17