Income Tax (Trading and Other Income) Act 2005 section 239

Election to accelerate charge under section 238

Section 239 allows a taxpayer who is spreading adjustment income over several years under section 238 to elect to bring forward the taxation of some or all of the remaining balance into an earlier period.

• Where adjustment income is being spread over up to six tax years, the taxpayer can choose to accelerate the charge by electing to have some or all of the outstanding amount taxed sooner.
• The election must be made within the normal self assessment time limit for the tax year in which the taxpayer wants the additional amount to be charged.
• The effect of the election is that the chosen additional amount is treated as arising in the tax year specified, increasing the adjustment income charged in that year accordingly.
• The amount accelerated reduces the balance still to be spread over future years, ensuring the total adjustment income charged never exceeds the original total amount.