[F131BRelevant maximumU.K.
(1)For the purposes of section 31A there is a “relevant maximum” applicable for a tax year in relation to a trade, profession or vocation carried on by a person if any of conditions A to C is met.
(2)Condition A is that an election under section 25A did not have effect in relation to the trade, profession or vocation for the previous tax year.
(3)Condition B is that the aggregate of the cash basis receipts of each trade, profession or vocation carried on by the person during the previous tax year is greater than [F2the higher of £300,000 or] an amount equal to twice the VAT threshold for that previous tax year.
(4)Condition C is that, in a case where the person is either an individual who controls a firm or a firm controlled by an individual, the aggregate of the cash basis receipts of each trade, profession or vocation carried on by the individual or the firm during the previous tax year is greater than [F3the higher of £300,000 or] an amount equal to twice the VAT threshold for that previous tax year.
(5)If there is a relevant maximum applicable for a tax year, the amount of the relevant maximum is—
(a)[F4the higher of £150,000 or] the VAT threshold, or
(b)in the case where the person is an individual who is a universal credit claimant in the tax year, [F5the higher of £300,000 or] an amount equal to twice the VAT threshold.
(6)For the purposes of this section, where the basis period for a tax year is less than 12 months, [F6amounts specified in subsections (3), (4) and (5) and the VAT threshold are] proportionately reduced.
(7)In this section—
“universal credit claimant”, in relation to a tax year, means a person who is entitled to universal credit under the relevant legislation for an assessment period (within the meaning of the relevant legislation) that falls within the basis period for the tax year,
“the relevant legislation” means—
(a)Part 1 of the Welfare Reform Act 2012, or
(b)any provision made for Northern Ireland which corresponds to that Part of that Act, and
“the VAT threshold”, in relation to a tax year, means the amount specified at the end of that tax year in paragraph 1(1)(a) of Schedule 1 to VATA 1994.
(8)The Treasury may by order amend this section.
(9)A statutory instrument containing an order under subsection (8) that restricts the circumstances in which an election may be made under section 25A may not be made unless a draft of the instrument containing the order has been laid before, and approved by a resolution of, the House of Commons.]
Textual Amendments
F1Pt. 2 Ch. 3A inserted (with effect in accordance with Sch. 4 paras. 56, 57 of the amending Act) by Finance Act 2013 (c. 29), Sch. 4 para. 5
F2Words in s. 31B(3) inserted (6.4.2017) (with effect in accordance with art. 1 of the amending S.I.) by The Income Tax (Relevant Maximum for Calculating Trade Profits on the Cash Basis) Order 2017 (S.I. 2017/293), arts. 1, 2(2)
F3Words in s. 31B(4) inserted (6.4.2017) (with effect in accordance with art. 1 of the amending S.I.) by The Income Tax (Relevant Maximum for Calculating Trade Profits on the Cash Basis) Order 2017 (S.I. 2017/293), arts. 1, 2(2)
F4Words in s. 31B(5)(a) inserted (6.4.2017) (with effect in accordance with art. 1 of the amending S.I.) by The Income Tax (Relevant Maximum for Calculating Trade Profits on the Cash Basis) Order 2017 (S.I. 2017/293), arts. 1, 2(3)(a)
F5Words in s. 31B(5)(b) inserted (6.4.2017) (with effect in accordance with art. 1 of the amending S.I.) by The Income Tax (Relevant Maximum for Calculating Trade Profits on the Cash Basis) Order 2017 (S.I. 2017/293), arts. 1, 2(3)(b)
F6Words in s. 31B(6) substituted (6.4.2017) (with effect in accordance with art. 1 of the amending S.I.) by The Income Tax (Relevant Maximum for Calculating Trade Profits on the Cash Basis) Order 2017 (S.I. 2017/293), arts. 1, 2(4)