[F131AConditions to be met for profits to be calculated on cash basisU.K.
(1)A person may make an election under section 25A for a tax year if conditions A to C are met.
(2)Condition A is that the aggregate of the cash basis receipts of each trade, profession or vocation carried on by the person during that tax year does not exceed any relevant maximum applicable for that tax year (see section 31B).
(3)Condition B is that, in a case where the person is either an individual who controls a firm or a firm controlled by an individual—
(a)the aggregate of the cash basis receipts of each trade, profession or vocation carried on by the individual or the firm during that tax year does not exceed any relevant maximum applicable for that tax year, and
(b)the firm or the individual (as the case may be) has also made an election under section 25A for that tax year.
(4)Condition C is that the person is not an excluded person in relation to the tax year (see section 31C).
(5)For the purposes of this section, the “cash basis receipts” of a trade, profession or vocation, in relation to a tax year, are any receipts that—
(a)are received during the basis period for the tax year, and
(b)would be brought into account in calculating the profits of the trade, profession or vocation for that tax year on the cash basis.]
Textual Amendments
F1Pt. 2 Ch. 3A inserted (with effect in accordance with Sch. 4 paras. 56, 57 of the amending Act) by Finance Act 2013 (c. 29), Sch. 4 para. 5