(1)This Chapter applies if—
(a)a person carrying on a UK property business changes, from one period of account to the next, the basis on which profits of the business are calculated for income tax purposes,
(b)the old basis accorded with the law or practice applicable in relation to the period of account before the change, and
(c)the new basis accords with the law and practice applicable in relation to the period of account after the change.
(2)The practice applicable in any case means the accepted practice in cases of that description as to how profits of a UK property business should be calculated for income tax purposes.
(3)Subsections (3) to (6) of section 227 (what is meant by a person changing the basis on which profits are calculated) apply for the purposes of this section as they apply for the purposes of that section (but as if any reference to a trade were to a UK property business).
(1)An amount by way of adjustment must be calculated in accordance with section 231, which applies in relation to a UK property business as it applies in relation to a trade.
(2)If the amount produced by the calculation is positive, it is treated as income and charged to income tax under this Chapter.
It is referred to in this Chapter as “adjustment income”.
(3)If the amount produced by the calculation is negative, a deduction is allowed for it in calculating the profits of the business.
It is referred to in this Chapter as an “adjustment expense”.
(4)This section is subject to section 234 (no adjustment for certain expenses previously brought into account), which applies in relation to a UK property business as it applies in relation to a trade.
Tax is charged under this Chapter on the full amount of any adjustment income arising in the tax year.
The person liable for any tax charged under this Chapter is the person receiving or entitled to the adjustment income.