Income Tax (Trading and Other Income) Act 2005 Explanatory Notes

Section 210: Rules if there is no accounting date

856.This is the third of the three sections whose purpose is to simplify the normal operation of the basis period rules in particular circumstances. It deals with the more complex case where there is no accounting date in the tax year.

857.That case is more complex because in those circumstances it is necessary:

  • to bring a notional accounting date into the tax year, corresponding to the intended accounting date; and

  • if the trade begins very near the end of the tax year, to charge the profits of the first tax year as part of the profits of the following tax year.

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