Income Tax (Trading and Other Income) Act 2005 section 95A

Application of Chapter to the cash basis

Section 95A acts as a signpost to the special rules about receipts that apply when a trade, profession or vocation calculates its profits using the cash basis.

• When profits are calculated on the cash basis, additional receipt rules apply beyond the standard rules in the chapter
• Section 97A requires the value of trading stock to be brought into account as a receipt when a trade ceases under the cash basis
• Section 97B requires the value of work in progress to be brought into account as a receipt when a profession or vocation ceases under the cash basis
• Section 96A deals with capital receipts where trade profits are, or have previously been, calculated on the cash basis, with supplementary provisions in section 96B