Income Tax (Trading and Other Income) Act 2005 section 76

Adjustment on change of basis

Section 76 establishes when the rules on adjustments for a change of accounting basis apply, by reference to the period of account in which the change takes effect.

• Chapter 7 of Part 3 governs the tax adjustments required when a business changes its accounting basis
• These rules apply where the change of basis takes effect for a period of account ending on or after 6 April 2005
• The change of basis is treated as taking effect in the first period of account for which the new basis is adopted
• This transitional provision ensures the adjustment rules apply to changes occurring from the commencement of the 2005 Act onwards