Part 2 Trading income

Chapter 15 Basis periods

Special rules if accounting date changes

215 Change of accounting date in third tax year

(1) This section applies if—

(a) a change of accounting date occurs in the third tax year in which a person carries on a trade,

(b) the person does not permanently cease to carry on the trade in that tax year, and

(c) the accounting date in that tax year falls more than 12 months after the end of the basis period for the second tax year in which the person carries on the trade.

(2) The basis period—

(a) begins immediately after the end of the basis period for the second tax year in which the person carries on the trade, and

(b) ends with the accounting date in the third tax year in which the person carries on the trade.