Income Tax (Trading and Other Income) Act 2005 section 106B

Application of Chapter

Section 106B establishes that the chapter applies when a person calculates their trading profits using the cash basis of accounting.

• This chapter only applies to the calculation of trading profits under the cash basis.
• The cash basis records income when received and expenses when paid, rather than when invoiced.
• The rules in this chapter govern how profits are worked out for a specific accounting period.
• This section acts as a gateway provision, confirming the scope of the chapter's application.