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

Election to disapply late accounting date rules

Section 275C allows a person carrying on a business to elect out of the rules that apply where they have a late accounting date (after 31 March), so that neither the start-up rule in section 275A nor the ongoing late accounting date rule in section 275B applies to their business for the relevant tax years.

• The person carrying on the business may elect to disapply the late accounting date rules in sections 275A and 275B for any tax year in which the election has effect.
• The election must be made on or before the first anniversary of the normal self-assessment filing date for the first tax year to which it is to apply.
• Once made, the election has effect for the initial tax year and the following four tax years — a total of five tax years.
• If the person permanently ceases the business before the end of that five-year period, the election only has effect up to and including the tax year immediately before the year in which the business permanently ceases.