Income Tax (Trading and Other Income) Act 2005 section 212

Consequence of treating middle date as accounting date

Section 212 sets out how the basis period for the current tax year is determined when the middle date has been treated as the accounting date under the rules in section 211.

• Where the middle date is treated as the accounting date, the basis period for the current tax year runs from immediately after the end of the previous year's basis period up to and including the middle date
• This adjusted basis period applies instead of the normal general rule, provided either subsection (2) or subsection (3) is met
• Subsection (2) covers cases where the previous year's accounting date was not itself determined under the middle date rule, but fell on one of the 7 (or 8) possible dates on which the current year's account-drawing date could land
• Subsection (3) covers cases where the previous year's accounting date was also determined under the middle date rule, and the accounting date in both years is the same