SCHEDULES

SCHEDULE 2Transitionals and savings etc.

Part 12Other provisions

Apportionment of miscellaneous profits or losses to tax years before tax year 2005-06

158

1

This paragraph applies if—

a

a relevant period of account begins before 6th April 2005 and ends on or after that date, and

b

in order to arrive at the profits or losses of a tax year before the tax year 2005-06 it is necessary to apportion the profits or losses of the relevant period of account to any part of that period falling in a tax year before the tax year 2005-06.

2

A period of account is a “relevant period of account” if—

a

section 871 applies to the period of account, and

b

the profits or losses of the part of the period of account falling in the tax year 2005-06 are calculated in accordance with this Act.

3

The profits or losses of the relevant period of account—

a

are calculated in accordance with this Act (and therefore, to that extent, this Act has effect for tax years before the tax year 2005-06), and

b

may be apportioned in accordance with section 871 to any part of the period of account falling in a tax year before the tax year 2005-06.