Section 232 Treatment of adjustment income
United Kingdom
Adjustment income is treated as arising on the last day of the first period of account for which the new basis is adopted.
But this is subject to sections 235 (cases where adjustment not required until assets realised or written off) and 236 (change from realisation basis to mark to market).
Adjustment income is treated for the purposes of F1Part 4 of ITA 2007(loss relief) as profits of the trade for the tax year in which tax is charged on it.
In the case of an individual whose income from F2the trade is relevant UK earnings within section 189(2)(b) of FA 2004, adjustment income is similarly relevant UK earnings.
Annotations
Textual amendments
- F1
Words in s. 232(3) substituted (6.4.2007 with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1027, 1034, Sch. 1 para. 502(2) (with transitional provisions and savings in Sch. 2)
- F2
Words in s. 232(4) substituted (6.4.2007 with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1027, 1034, Sch. 1 para. 502(3) (with transitional provisions and savings in Sch. 2)
Modifications
- C1
S. 232(1)(2) applied (6.4.2007 with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 524(5), 526(6), 1034 (with transitional provisions and savings in Sch. 2)