Income Tax (Trading and Other Income) Act 2005 (c. 5)

Part 2 U.K. Trading income

Chapter 17 U.K. Adjustment income

Treatment of adjustment income and adjustment expense U.K.

233 Treatment of adjustment expense U.K.

(1) An adjustment expense is treated as an expense of the trade arising on the last day of the first period of account for which the new basis is adopted.

(2) But this is subject to sections 235 (cases where adjustment not required until assets realised or written off) and 236 (change from realisation basis to mark to market).