Income Tax (Trading and Other Income) Act 2005

Profits or losses of a trade, profession or vocation previously chargeable in accordance with section 65(1) of ICTA

50 (1) This paragraph applies if—

(a) a person carries on a trade, profession or vocation wholly outside the United Kingdom, and

(b) the trade, profession or vocation was chargeable to income tax in accordance with section 65(1) of ICTA (Case IV and V assessments: general) for a tax year before 2005-06.

(2) If the trade, profession or vocation was so chargeable for the tax year 2004-05, the person is treated for the purpose of determining the basis period for the tax year 2005-06 and subsequent tax years as if the person started to carry on the trade, profession or vocation on 6th April 2005.

(3) For the purposes of section 391 of ICTA (as substituted by Schedule 1 to this Act), no account is to be taken of any loss made in any tax year before tax year 2005-06 if the trade, profession or vocation was chargeable to income tax in accordance with section 65(1) of ICTA for that tax year.