Income Tax (Trading and Other Income) Act 2005 section 160

Alternative basis of calculation in early years of practice

Section 160 previously provided an alternative method for calculating trading income in the early years of a business, but was removed from the legislation with effect from the 2013-14 tax year onwards.

• Section 160 offered an alternative basis for calculating taxable trading profits during the opening years of a new business.
• The section was part of a set of rules that determined how profits were allocated to tax years when a trade first commenced.
• The section was omitted entirely by Finance Act 2013, Schedule 4, paragraph 51, as part of wider reforms to the basis period rules.
• The repeal took effect from the 2013-14 tax year and all subsequent tax years, meaning the alternative calculation method is no longer available.