Meaning of items being brought into accountU.K.
3(1)The references in paragraph 2 to items being brought into account in a period of account before the change of basis are to their being brought into account—
(a)in computing the profits of the same trade, profession or vocation, and
(b)in accordance with the law or practice then applicable.
(2)For the purposes of sub-paragraph (1)(a) a trade [F1is not regarded as the same if section 337(1) of the Taxes Act 1988 applies (companies beginning or ceasing to carry on trade).]
(3)For the purposes of sub-paragraph (1)(b) the practice applicable in any case means the accepted practice in cases of that description as to how profits should be computed for the purposes of Case I or II of Schedule D.
Textual Amendments
F1Words in Sch. 22 para. 3(2) substituted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 578(3) (with Sch. 2)