Part 2Trading income
Chapter 17Adjustment income
F1Spreading of adjustment income on leaving cash basis
Annotations:
Amendments (Textual)
239ASpreading on leaving cash basis
1
This section applies if—
a
F2the cash basis applies in relation to a trade for a tax year, and
b
F3the cash basis does not apply in relation to the trade for the following tax year.
2
Any adjustment income is spread over 6 tax years as follows.
3
In each of the 6 tax years beginning with that in which the whole amount of the adjustment income would otherwise be chargeable to tax, an amount equal to one-sixth of the amount of the adjustment income is treated as arising and is charged to tax.
4
This section is subject to any election under section 239B (election to accelerate charge).
Ss. 239A, 239B and cross-heading inserted (with effect in accordance with Sch. 4 paras. 56, 57 of the amending Act) by Finance Act 2013 (c. 29), Sch. 4 para. 37