Income Tax (Trading and Other Income) Act 2005 section 50

Profits or losses of a trade, profession or vocation previously chargeable in accordance with section 65(1) of ICTA

Section 50 deals with the transitional treatment of trades, professions or vocations carried on entirely outside the United Kingdom that were previously taxed under the old remittance basis rules, establishing a deemed start date for basis period purposes from 2005-06 onwards.

• This provision applies to any person carrying on a trade, profession or vocation wholly outside the United Kingdom.
• The trade, profession or vocation must have been chargeable to income tax under section 65(1) of ICTA (the old Case IV and V assessment rules) for a tax year before 2005-06.
• Where the trade was taxed under those old rules for the 2004-05 tax year, the person is treated as having started the trade on 6 April 2005 for the purpose of determining basis periods for 2005-06 and later years.
• This deemed commencement date ensures a clean transition from the old assessment rules to the current year basis introduced by ITTOIA 2005.