Section 127E Adjustment: cessation of tradingF1

If the farm company permanently ceases to carry on the farming trade before the end of the second consecutive accounting period following period X, step 3 in section 127D is to be replaced by the following two steps—

• Step 3

  Divide the amount deducted by virtue of step 2 by the number of accounting periods (“the remaining accounting periods”) in which, or in any part of which, the farm company carried on the farming trade, starting with period X.

• Step 4

  In calculating the profits for each of the remaining accounting periods, include the amount resulting from the division in step 3.