Income Tax (Trading and Other Income) Act 2005 section 209

Rule if there is an accounting date

Section 209 simplifies the basis period rules where a business has an accounting date that falls on 31st March or between 1st and 4th April in a tax year.

• The rule applies where the business has an accounting date in the tax year falling on 31st March or 1st, 2nd, 3rd or 4th April.
• If the normal basis period for the tax year would extend beyond this accounting date, the basis period is shortened to end on the accounting date instead.
• This shortened treatment only applies where the days that would otherwise fall after the accounting date are already picked up in the basis period for the following tax year.
• The effect is to treat accounting dates close to 5th April as if they coincided with the tax year end, avoiding overlap of a few days.