Part 2Trading income

Chapter 11Trade profits: other specific trades

Barristers and advocates

160Alternative basis of calculation in early years of practice

1

The profits of a barrister or advocate in independent practice for a period of account ending not more than 7 years after the start of such practice may be calculated in accordance with this section.

2

For this purpose barristers and advocates start in independent practice when they first hold themselves out as available for fee-earning work.

3

The profits of a barrister or advocate for a period of account to which this section applies may be calculated—

a

on a cash basis, or

b

by reference to fees earned whose amount has been agreed or in respect of which a fee note has been delivered.

4

Once a particular basis has been adopted it must be applied consistently.

5

If for any period of account an accounting basis is adopted that complies with section 25 (generally accepted accounting practice), the exemption from that section given by this section ceases.

6

In that case, section 25 applies to all subsequent periods of account.