Income Tax (Trading and Other Income) Act 2005 section 820

Periods of account not ending on 5th April

Section 820 explains when special rules apply to qualifying care relief where the carer's trade accounts do not end on 5 April.

• The section applies where an individual qualifies for qualifying care relief, their care receipts are trading receipts, and their accounting period does not end on 5 April
• Where these conditions are met, further rules in sections 822 and 823 come into play to adjust the relief calculations
• If the trade uses the cash basis of accounting, references to when receipts "accrue" are replaced with references to when receipts are actually "received"
• These rules affect only a minority of qualifying carers — those who prepare their trade accounts to a date other than 5 April