Section 222 | Circumstances in which claim for two-year averaging may be made

(1)An averaging claim may be made under this section in relation to two consecutive tax years in which a taxpayer is or has been carrying on the qualifying trade, profession or vocation if—^F1

(a)the relevant profits of one of the tax years are less than 75% of the relevant profits of the other tax year, or

(b)the relevant profits of one (but not both) of the tax years are nil.

(2)The earlier of the two years to which an averaging claim under this section relates may be a tax year in relation to which an averaging claim under this section or section 222A has already been made.^F2

(3)An averaging claim may not be made under this section in relation to a tax year if an averaging claim has already been made under this section or section 222A in relation to a later tax year in respect of the trade, profession or vocation.^F3F4

(4)An averaging claim may not be made under this section in relation to the tax year in which—^F5

(a)the taxpayer starts, or permanently ceases, to carry on the trade, profession or vocation, or

(b)in the case of a trade, profession or vocation within section 221(2)(c), it begins or ceases to be a qualifying trade, profession or vocation.

(5)An averaging claim under this section must be made on or before the first anniversary of the normal self-assessment filing date for the second of the tax years to which the claim relates.^F6

(6)But see section 225(4) (extended time limit if profits adjusted for some other reason).