SCHEDULES

SCHEDULE 22Computation of profits: adjustment on change of basis

Part 2General rules

3Meaning of items being brought into account

1

The references in paragraph 2 to items being brought into account in a period of account before the change of basis are to their being brought into account—

a

in computing the profits of the same trade, profession or vocation, and

b

in accordance with the law or practice then applicable.

2

For the purposes of sub-paragraph (1)(a) a trade F1is not regarded as the same if section 337(1) of the Taxes Act 1988 applies (companies beginning or ceasing to carry on trade).

3

For the purposes of sub-paragraph (1)(b) the practice applicable in any case means the accepted practice in cases of that description as to how profits should be computed for the purposes of Case I or II of Schedule D.