Overlap profit: pre-April 1994 trades, professions and vocationsU.K.
52(1)This paragraph applies in the case of a trade, profession or vocation which was—U.K.
(a)set up and commenced by a person before 6th April 1994, and
(b)continued by the person after 5th April 1997,
and the profits of which were chargeable to income tax under Case I or II of Schedule D for the tax year 1997-98.
(2)For the purposes of Chapter 15 of Part 2 “overlap profit” includes the amount of profits or gains of the basis period for the tax year 1997-98 which—
(a)arose after the end of the basis period for the tax year 1996-97 or, in the case of a trade or profession carried on by a firm, the basis period of the firm for that year, and
(b)arose before 6th April 1997.
(3)In calculating the amount of the profits or gains of the basis period for the tax year 1997-98 which arose as mentioned above—
(a)any deduction of a capital allowance, and
(b)any addition of a balancing charge,
are ignored.
(4)But sub-paragraph (3) does not apply in the case of a trade or profession carried on by a firm which included both an individual and a company.
(5)For the purposes of this paragraph the basis period for the tax year 1996-97 is determined in accordance with paragraph 1 of Schedule 20 to FA 1994 despite the repeal by this Act of that paragraph.
(6)This paragraph is subject to Schedule 22 to FA 1995 (prevention of exploitation of the transitional rules facilitating self-assessment).
53(1)This paragraph applies in the case of income which—U.K.
(a)was immediately derived from the carrying on of a trade, profession or vocation set up and commenced by a person before 6th April 1994 and continued by the person after 5th April 1998, and
(b)was chargeable to income tax under Case IV or V of Schedule D for the tax year 1997-98.
(2)But, in the case of income which was chargeable to tax by reference to the amounts of income received in the United Kingdom, this paragraph applies only if the date on which the first amount of income was received in the United Kingdom was before 6th April 1994.
(3)For the purposes of Chapter 15 of Part 2 “overlap profit” includes the amount of profits or gains of the basis period for the tax year 1997-98 which arose before 6th April 1997.
(4)This paragraph is subject to Schedule 22 to FA 1995 (prevention of exploitation of the transitional rules facilitating self-assessment).
54U.K.The repeal by this Act of paragraphs 2, 6 and 10 of Schedule 20 to FA 1994 (changes for facilitating self-assessment: transitional provisions and savings) does not affect the continuing application of the assumptions mentioned in paragraph 11(4) of that Schedule (double taxation relief).