# Finance Act 2024, Paragraph 49: Transitional provision

Extent: E+W+S+N.I.

(1) This paragraph has effect for the purposes of construing references in the Income Tax Acts to a change in the basis of calculation of the profits of a trade (but not a property business) for the tax year 2024-25.
(2) A person carrying on a trade “enters the cash basis” in relation to the trade in the tax year 2024-25 if—
(a) the cash basis applies in relation to the trade for the tax year 2024-25, and
(b) no election under section 25A of ITTOIA 2005 had effect in relation to the trade for the tax year 2023-24,
and related expressions are to be construed accordingly.
(3) A person carrying on a trade “leaves the cash basis” in relation to the trade in the tax year 2024-25 if—
(a) an election under section 25A of ITTOIA 2005 had effect in relation to the trade for the tax year 2023-24, and
(b) the cash basis does not apply in relation to the trade for the tax year 2024-25,
and related expressions are to be construed accordingly.
(4) For the purposes of this paragraph, the cash basis applies to a trade in relation to a tax year if the profits of the trade for the tax year are required by virtue of section 24A(1) of ITTOIA 2005 to be calculated in accordance with that section.

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Source: https://www.legislation.gov.uk/ukpga/2024/3/schedule/10/paragraph/49 (the official version)
Page: https://openlegislation.uk/finance-act-2024/schedule-10/paragraph-49
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.