Valid from 06/04/2005
52(1)This paragraph applies in the case of a trade, profession or vocation which was—U.K.
(a)set up and commenced by a person before 6th April 1994, and
(b)continued by the person after 5th April 1997,
and the profits of which were chargeable to income tax under Case I or II of Schedule D for the tax year 1997-98.
(2)For the purposes of Chapter 15 of Part 2 “overlap profit” includes the amount of profits or gains of the basis period for the tax year 1997-98 which—
(a)arose after the end of the basis period for the tax year 1996-97 or, in the case of a trade or profession carried on by a firm, the basis period of the firm for that year, and
(b)arose before 6th April 1997.
(3)In calculating the amount of the profits or gains of the basis period for the tax year 1997-98 which arose as mentioned above—
(a)any deduction of a capital allowance, and
(b)any addition of a balancing charge,
are ignored.
(4)But sub-paragraph (3) does not apply in the case of a trade or profession carried on by a firm which included both an individual and a company.
(5)For the purposes of this paragraph the basis period for the tax year 1996-97 is determined in accordance with paragraph 1 of Schedule 20 to FA 1994 despite the repeal by this Act of that paragraph.
(6)This paragraph is subject to Schedule 22 to FA 1995 (prevention of exploitation of the transitional rules facilitating self-assessment).