SCHEDULES

SCHEDULE 22U.K.Computation of profits: adjustment on change of basis

Part 2U.K.General rules

Giving effect to negative adjustmentU.K.

5(1)If the amount of the adjustment is negative, it is allowed as a deduction in computing profits.

(2)An amount so allowed as a deduction in computing profits is treated as an expense of the trade, profession or vocation arising on the last day of the first period of account for which the new basis is adopted.