Income Tax (Trading and Other Income) Act 2005 section 197

Meaning of "accounting date"

Section 197 defines the term "accounting date" as it applies to the basis period rules for trading income.

• The accounting date for a tax year is the date in that year to which the business's accounts are drawn up
• Where two or more sets of accounts end in the same tax year, the latest of those dates is taken as the accounting date
• A special rule applies where accounts are made up to a particular day of the year rather than a fixed calendar date, in which case a middle date is treated as the accounting date
• Where a change of accounting date results in a period of account that spans more than one tax year, a deemed accounting date may be treated as falling in an intervening year that would otherwise have no accounting date