Section 227B Cash basis treatment: full relief under Chapter 1 of Part 6A (trading allowance)F1

United Kingdom

(1)

Subsection (2) applies if—

(a)

an individual carries on a trade in a tax year, and

(b)

the profits or losses of the trade for the tax year are treated as nil under section 783AF (trade profits: full relief under Chapter 1 of Part 6A) by virtue of the fact that the conditions in section 783AE(2) are met.

(2)

For the purposes of determining if this Chapter applies, F2the cash basis is to be treated as not applying in relation to the trade for the tax year.

Annotations

Textual amendments

F1: Ss. 227B, 227C inserted (16.11.2017) (with effect in accordance with Sch. 3 para. 13 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 3 para. 7
F2: Words in s. 227B(2) substituted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 10 paras. 26, 47 (with Sch. 10 paras. 48-50)