Income Tax (Trading and Other Income) Act 2005 section 158

Apportionment of miscellaneous profits or losses to tax years before tax year 2005-06

Section 158 deals with how miscellaneous profits or losses from an accounting period that straddles 6 April 2005 should be apportioned to tax years before 2005-06.

• This provision applies where an accounting period begins before 6 April 2005 and ends on or after that date, and profits or losses need to be split for a pre-2005-06 tax year.
• An accounting period is a "relevant period of account" if section 871 applies to it and the profits or losses for the portion falling in 2005-06 are calculated under ITTOIA 2005.
• The profits or losses for the entire relevant accounting period are calculated under ITTOIA 2005, meaning the Act effectively applies to tax years before 2005-06 for this purpose.
• Those profits or losses may then be apportioned under section 871 to any part of the accounting period that falls in a tax year before 2005-06.