Income Tax (Trading and Other Income) Act 2005

210 Rules if there is no accounting date U.K.

(1) This section applies if there is no accounting date in a tax year (“the relevant tax year”).

(2) If the trader—

(a) starts to carry on the trade in the relevant tax year, and

(b) does so before 1st April,

the basis period ends on the date in the relevant tax year that corresponds to the first accounting date.

(3) If the trader started to carry on the trade in the previous tax year and there was no accounting date in the previous tax year, the basis period for the relevant tax year—

(a) begins immediately after the end of the basis period for the previous tax year, and

(b) ends on the date in the relevant tax year that corresponds to the first accounting date.

(4) If the trader—

(a) starts to carry on the trade in the relevant tax year, and

(b) does so after 31st March,

the profits or losses of the trade of the relevant tax year are treated as nil.

(5) In that case, the actual profits or losses of the trade of the relevant tax year are treated as arising in the basis period for the following tax year, so far as they do not already do so.