Part 2Trading income
Chapter 2Income taxed as trade profits
Starting and ceasing to trade
17Effect of becoming or ceasing to be a UK resident
F31
This section applies if—
a
an individual carries on a trade otherwise than in partnership, and
b
there is a change of residence.
1A
For the purposes of this section there is a “change of residence” if—
a
the individual becomes or ceases to be UK resident, or
b
a tax year is, as respects the individual, a split year.
1B
The change of residence occurs—
a
in a case falling within subsection (1A)(a), at the start of the tax year for which the individual becomes or ceases to be UK resident, and
b
in a case falling within subsection (1A)(b), at the start of whichever of the UK part or the overseas part of the tax year is the later part.
2
F2If this section applies and the individual does not actually cease permanently to carry on the trade immediately before the change of residence occurs, the individual is treated for income tax purposes—
a
as permanently ceasing to carry on the trade at the time of the change of residence, and
b
so far as the individual continues to carry on the trade, as starting to carry on a new trade immediately afterwards.
3
But subsection (2) does not prevent a loss made before the change of residence from being F1deducted under section 83 of ITA 2007 from profits arising after the change.
4
This section applies to professions and vocations as it applies to trades.
5
In the case of a trade carried on by a firm, see sections 852(6) and (7) and 854(5).
18Effect of company starting or ceasing to be within charge to income tax
1
This section applies if a company starts or ceases to be within the charge to income tax under this Chapter in respect of a trade.
2
The company is treated for the purposes of this Part—
a
as starting to carry on the trade when it starts to be within the charge, or
b
as permanently ceasing to carry on the trade when it ceases to be within the charge.