Income Tax (Trading and Other Income) Act 2005 section 329

Application of Chapter

Section 329 sets out the circumstances in which an adjustment income or expense may arise when a UK property business changes the basis on which its profits are calculated for income tax purposes.

• The chapter applies when a person carrying on a UK property business changes the method used to calculate profits from one accounting period to the next.
• The old method must have been in line with the law or accepted practice applicable to the accounting period before the change.
• The new method must accord with the law and accepted practice applicable to the accounting period after the change.
• The definition of what constitutes a change in the basis of profit calculation follows the same rules as for trades under section 227, but with references to "trade" read as references to a UK property business.