Income Tax (Trading and Other Income) Act 2005 section 207

Treatment of business start-up payments received in an overlap period

Section 207 provides special rules for business start-up payments received during an overlap period, but paragraph 49 of Schedule 2 ensures these rules do not apply to payments received before 6 April 2005.

• Trade, profession or vocation profits for a tax year are normally based on the profits of the relevant basis period
• The basis period may include a period falling before 6 April 2005
• Section 207, which deals with business start-up payments received in an overlap period, does not apply to payments received before 6 April 2005
• This transitional exception preserves the previous tax treatment for start-up payments received under the earlier legislation