# Income Tax (Trading and Other Income) Act 2005, Section 334: Treatment of adjustment expense


(1) An adjustment expense is treated as an expense of the business arising on the last day of the first period of account for which the new basis is adopted.
(2) But if there is a change of basis resulting from a tax adjustment affecting the calculation of any amount brought into account in respect of depreciation, an adjustment expense is treated as arising only when the asset to which it relates is realised or written off.

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Source: https://www.legislation.gov.uk/ukpga/2005/5/section/334 (the official version)
Page: https://openlegislation.uk/income-tax-trading-and-other-income-act-2005/section-334
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.