Income Tax (Trading and Other Income) Act 2005 (c. 5)

Part 2 U.K. Trading income

[F1 Chapter 17A U.K. Cash basis: adjustments for capital allowances

Textual Amendments

F1 Pt. 2 Ch. 17A inserted (with effect in accordance with Sch. 4 paras. 56, 57 of the amending Act) by Finance Act 2013 (c. 29), Sch. 4 para. 38

Adjustments on entering cash basis U.K.

240B “Entering the cash basis” U.K.

For the purposes of this Chapter a person carrying on a trade enters the cash basis for a tax year if—

(a) [F2 the cash basis applies] in relation to the trade for the tax year, and

(b) immediately before the beginning of F3 ... the tax year, [F4 the cash basis does not apply] in relation to the trade.]

Textual Amendments

F2 Words in s. 240B(a) substituted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 10 paras. 28(a), 47 (with Sch. 10 paras. 48-50)

F3 Words in s. 240B(b) omitted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2022 (c. 3), Sch. 1 paras. 15, 61(1)

F4 Words in s. 240B(b) substituted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 10 paras. 28(b), 47 (with Sch. 10 paras. 48-50)