Income Tax (Trading and Other Income) Act 2005 section 210

Rules if there is no accounting date

Section 210 deals with how basis periods are determined when there is no accounting date falling within a particular tax year, including special rules for trades starting near the end of the tax year.

• Where a trader starts trading before 1 April in the relevant tax year, the basis period ends on the date in that year corresponding to the first accounting date
• Where the trade started in the previous tax year and that year also had no accounting date, the basis period runs from the end of the previous year's basis period to the corresponding accounting date in the relevant tax year
• Where a trader starts trading after 31 March in the relevant tax year, the profits or losses for that year are treated as nil
• Any actual profits or losses from a late start are rolled forward and treated as arising in the basis period for the following tax year, to the extent they are not already included

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