Part 2Trading income

Chapter 2Income taxed as trade profits

Charge to tax on trade profits

F17BRule if trader starts to carry on trade after 31 March

(1)

This section applies if, in a tax year (“the relevant tax year”), the trader—

(a)

starts to carry on the trade after 31 March, and

(b)

does not permanently cease to carry on the trade.

(2)

For the purposes of this Chapter—

(a)

the profits or losses of the trade of the relevant tax year are treated as nil, and

(b)

the actual profits or losses of the trade of the relevant tax year are treated as arising in the following tax year.