Part 10General provisions
Chapter 2General calculation rules etc.
Apportionment of profits
871Apportionment etc. of miscellaneous profits to tax year
1
This section applies if—
a
income is chargeable to income tax under or by virtue of any provision to which F1section 1016 of ITA 2007 applies, and
b
any period for which the accounts are drawn up (a “period of account”) does not coincide with a tax year.
2
3
Any of the following steps may be taken if they are necessary in order to arrive at the profits or losses of the tax year—
a
apportioning the profits or losses of a period of account to the parts of that period falling in different tax years, and
b
adding the profits or losses of a period of account (or part of a period) to profits or losses of other periods of account (or parts).
4
The steps must be taken by reference to the number of days in the periods concerned.
5
But the person to whom the profits or losses arise may use a different way of measuring the length of the periods concerned if—
a
it is reasonable to do so, and
b
the way of measuring the length of periods is used consistently for the purpose of charging to income tax the income in question.