Section 240B “Entering the cash basis”F1

For the purposes of this Chapter a person carrying on a trade enters the cash basis for a tax year if—

(a)

F2the cash basis applies in relation to the trade for the tax year, and

(b)

immediately before the beginning of F3... the tax year, F4the cash basis does not apply in relation to the trade.

Annotations

F1: Pt. 2 Ch. 17A inserted (with effect in accordance with Sch. 4 paras. 56, 57 of the amending Act) by Finance Act 2013 (c. 29), Sch. 4 para. 38
F2: Words in s. 240B(a) substituted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 10 paras. 28(a), 47 (with Sch. 10 paras. 48-50)
F3: Words in s. 240B(b) omitted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2022 (c. 3), Sch. 1 paras. 15, 61(1)
F4: Words in s. 240B(b) substituted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 10 paras. 28(b), 47 (with Sch. 10 paras. 48-50)