Section 227B | Cash basis treatment: full relief under Chapter 1 of Part 6A (trading allowance)

(1)Subsection (2) applies if—

(a)an individual carries on a trade in a tax year, and

(b)the profits or losses of the trade for the tax year are treated as nil under section 783AF (trade profits: full relief under Chapter 1 of Part 6A) by virtue of the fact that the conditions in section 783AE(2) are met.

(2)For the purposes of determining if this Chapter applies, the cash basis is to be treated as not applying in relation to the trade for the tax year.