Section 225ZE Adjustment: cessation of tradingF1

If the farmer permanently ceases to carry on the farming trade before the end of the second of the 3 consecutive tax years following Year 1, step 4 in section 225ZD(1) is to be replaced by the following two steps—

• Step 4

  Divide the total amount deducted by virtue of steps 2 and 3 by the number of tax years (“the remaining tax years”) in which, or in any part of which, the farmer carried on the farming trade, starting with Year 1.

• Step 5

  Include in the profits of each of the remaining tax years the amount resulting from the division in step 4.