5

Subsections (6) and (7) apply if—

a

the receipts would otherwise be brought into account in calculating the profits of a trade, and

b

an election under section 25A (cash basis for small businesses) has effect in relation to the trade.

6

Any amounts brought into account under section 96A (capital receipts) as a receipt in calculating the profits of the trade are to be treated as receipts within paragraph (a) of subsection (1) above.

7

The reference in subsection (1)(b) to receipts that accrue to an individual during the income period for those receipts is to be read as a reference to receipts that are received by the individual during that period.