Paragraph 7 Chapter 3A (trade profits: cash basis)

Section 31E (calculation of profits on cash basis) is amended as follows.

In subsection (2), in each of Steps 1 and 2, omit “the basis period for”.

At the end insert—

“(4)

In determining the profits of a trade on the cash basis, section 7A(2) applies as if the profits or losses of a period of account were determined in accordance with subsection (2) of this section (and for these purposes, references in subsection (2) of this section to a tax year are to be read as references to a period of account).”