Section 224 | Effect of adjustment

(1)The adjusted profits are taken to be the relevant profits of the tax years to which the claim relates for all income tax purposes, including the further application of this Chapter.

(2)This is subject to—

(a)subsection (3) of this section and section 225(2), and

(b)paragraph 3 of Schedule 1B to TMA 1970.

(3)If the relevant profits of one of the tax years are nil, this Chapter does not prevent the taxpayer from obtaining relief under the Income Tax Acts for a loss made by the taxpayer in the tax year in question or any other tax year.

(4)A claim by the taxpayer for relief under any other provision of the Income Tax Acts for any of the tax years to which an averaging claim relates (“the other claim”)—

(a)is not out of time if made on or before the last date on which the averaging claim could have been made, and

(b)if already made, may be amended or revoked on or before that date.

(5)For this purpose—

(a)references to a claim include an election or notice, and

(b)if the other claim is made in a return, the reference to amending or revoking the other claim is to amending the return by amending or omitting the other claim.

(6)For provision determining in which tax year a claim, amendment or revocation made as a result of subsection (4) has effect, see paragraph 4 of Schedule 1B to TMA 1970 (claim, amendment or revocation given effect in the last of the two or five tax years).