Income Tax (Trading and Other Income) Act 2005 section 234

No adjustment for certain expenses previously brought into account

Section 234 prevents a double tax benefit when a change of accounting basis would cause expenses already fully deducted to be spread and deducted again over several future periods.

• This section applies where expenses were fully deducted under the old basis but would, under the new basis, be spread across more than one period of account after the change.
• No adjustment income or expense is calculated under the change-of-basis rules in this chapter for those expenses.
• No further tax deduction is allowed for those expenses in any period of account after the change, because the deduction has already been claimed in full.
• The effect is to preserve the original relief without allowing expenses to be deducted a second time under the new basis.