Part 2

Trading income
Chapter 2

Income taxed as trade profits

Charge to tax on trade profits

Rule if there is a late accounting date
7C
1
This section applies if, in a tax year (“the relevant tax year”), the trader—
a
does not start to carry on the trade or does so before 1 April,
b
does not permanently cease to carry on the trade, and
c
has an accounting date that is 31 March or 1, 2, 3 or 4 April.
2
For the purposes of this Chapter—
a
the profits or losses of the trade of the period beginning immediately after the accounting date and ending with 5 April in the relevant tax year are treated as nil, and
b
the actual profits or losses of the trade of that period are treated as arising in the following tax year.
3
In this section, “
accounting date
” in relation to a tax year means—
a
the date in the tax year to which accounts are drawn up, or
b
if there are two or more such dates, the latest of them.
Ss. 7A-7D inserted (with effect in accordance with s. 61(1)(3) of the amending Act) by Finance Act 2022 (c. 3), Sch. 1 para. 3