205Deduction for overlap profit in final tax yearU.K.
This section has no associated Explanatory Notes
(1)If a person permanently ceases to carry on a trade in a tax year, a deduction is allowed for overlap profit in calculating the profits of the trade of the tax year.
(2)The amount of the deduction is calculated as follows.
Step 1
Add together the overlap profits arising in all overlap periods.
Step 2
Subtract from that any deductions for overlap profit made under section 220 (deduction for overlap profit on change of accounting date).
The balance is the amount of the deduction allowed under this section.