Income Tax (Trading and Other Income) Act 2005 section 275A

Rule if person starts to carry on business after 31 March

Section 275A sets out how profits or losses are treated when a person starts carrying on a business after 31 March in a tax year.

• The section applies where a business commences after 31 March in a tax year and does not permanently cease in that same year
• The profits or losses of the business for that tax year are treated as nil
• The actual profits or losses from that tax year are instead treated as arising in the following tax year
• This effectively pushes the first period's results into the next tax year for income tax purposes