Modifications etc. (not altering text)
C1Pt. 2 Ch. 15 excluded (14.2.2006 with effect as mentioned in reg. 1(2) of the amending S.I.) by S.I. 1997/2681 reg. 6(1)(a) as amended by The Lloyd's Underwriters (Scottish Limited Partnerships) (Tax) (Amendment) Regulations 2006 (S.I. 2006/111), reg. 8
C2Pt. 2 Ch. 15 applied (with application in accordance with Sch. 1 para. 62 of the amending Act) by Finance Act 2022 (c. 3), Sch. 1 para. 63
C3Pt. 2 Ch. 15 applied (with application in accordance with Sch. 1 para. 64 of the amending Act) by Finance Act 2022 (c. 3), Sch. 1 para. 65
(1)This section applies if—
(a)a change of accounting date occurs in a tax year in which a person carries on a trade,
(b)the tax year is later than the third tax year in which the person carries on the trade, and
(c)the person does not permanently cease to carry on the trade in the tax year.
(2)If—
(a)the conditions in section 217 are met (conditions for basis period to end with new accounting date), and
(b)the new accounting date falls less than 12 months after the end of the basis period for the previous tax year,
the basis period is that given by the general rule in section 198.
(3)If—
(a)the conditions in section 217 are met, and
(b)the new accounting date falls more than 12 months after the end of the basis period for the previous tax year,
the basis period begins immediately after the end of the basis period for the previous tax year and ends with the accounting date.
(4)If the conditions in section 217 are not met, the basis period for the tax year is the period of 12 months ending with the old accounting date.