Income Tax (Trading and Other Income) Act 2005

218Commercial reasons for change of accounting dateU.K.
This section has no associated Explanatory Notes

(1)If the Inland Revenue [F1does] not give notice under this section to the person carrying on the trade, a change of accounting date is treated for the purposes of condition B in section 217 as made for commercial reasons.

(2)If the Inland Revenue [F1does] give notice under this section to the person carrying on the trade, a change of accounting date is treated for the purposes of condition B in section 217 as made for reasons which are not commercial.

(3)The notice must—

(a)state that [F2the officer is not] satisfied that the change of accounting date is made for commercial reasons, and

(b)be given within the period of 60 days beginning with the date on which the notice under section 217(2) is received.

(4)A person to whom notice is given under this section may appeal against it within the period of 30 days beginning with the date on which it is given.

(5)On an appeal [F3that is notified to the tribunal]

(a)if the [F4tribunal is] satisfied that the change is made for commercial reasons, [F5the tribunal] may set aside the notice, and

(b)if [F6the tribunal is] not satisfied that the change is made for commercial reasons, [F7the tribunal may] confirm the notice.

(6)For the purposes of this section obtaining a tax advantage is not a commercial reason.

(7)Part 5 of TMA 1970 (appeals against assessments to tax), apart from section 50, applies in relation to an appeal under this section as it applies in relation to an appeal against an assessment to tax.