Part 3

Property income
Chapter 7

Adjustment income

Adjustment on change of basis

Adjustment income and adjustment expense
330
1
An amount by way of adjustment must be calculated in accordance with section 231, which applies in relation to a UK property business as it applies in relation to a trade.
2
If the amount produced by the calculation is positive, it is treated as income and charged to income tax under this Chapter.
It is referred to in this Chapter as “adjustment income”.
3
If the amount produced by the calculation is negative, a deduction is allowed for it in calculating the profits of the business.
It is referred to in this Chapter as an “adjustment expense”.
4
This section is subject to section 234 (no adjustment for certain expenses previously brought into account), which applies in relation to a UK property business as it applies in relation to a trade.