Income Tax (Trading and Other Income) Act 2005

208 When the late accounting date rules apply

(1) Sections 209 and 210 contain rules for the purpose of—

(a) avoiding the need to apportion profits, and

(b) preventing overlap profit from arising,

in relation to the tax year in which a person (“the trader”) starts to carry on a trade and the following tax year.

(2) Sections 209 and 210 apply in relation to a tax year if—

(a) the first accounting date is 31st March or 1st, 2nd, 3rd or 4th April, and

(b) that date falls in the tax year in which the trader starts to carry on the trade or in either of the following two tax years,

but the trader may elect for those sections not to apply in relation to a tax year.

(3) In this section and section 210 “the first accounting date” means—

(a) the first accounting date after the trader starts to carry on the trade, or

(b) the date that is intended to be that accounting date if, at the time the trader delivers a return for a tax year, there has been no accounting date.

(4) An election under this section must be made on or before the first anniversary of the normal self-assessment filing date for the tax year to which it relates.