# Income Tax (Trading and Other Income) Act 2005, Section 225ZE: Adjustment: cessation of trading


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.

---
Source: https://www.legislation.gov.uk/ukpga/2005/5/section/225ZE (the official version)
Page: https://openlegislation.uk/income-tax-trading-and-other-income-act-2005/section-225ZE
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.