Income Tax (Trading and Other Income) Act 2005 section 229

Income charged

Section 229 establishes how adjustment income is charged to tax, confirming that the full amount is taxable in the year it arises, subject to certain reliefs.

• The full amount of any adjustment income arising in a tax year is charged to income tax
• Adjustment income is taxed separately from the normal trading profits of the business
• Spreading provisions under sections 237 to 239B may allow the charge to be spread over more than one year
• Special rules under Part 8 may apply where the adjustment income relates to foreign income