Section 237 | Election for spreading if section 236 applies

(1)If section 236 applies, the person who is liable to tax on any adjustment income may elect for the adjustment income to be spread over 6 periods of account.

(2)The election must be made on or before the first anniversary of the normal self-assessment filing date for the tax year in which the change of basis occurs.

(3)If an election is made, an amount equal to one-sixth of the amount of the adjustment income—

(a)is treated as arising, and

(b)is charged to tax,

in each of the 6 periods of account beginning with the first period to which the new basis applies.

(4)But if, before the whole of the adjustment income has been charged to tax, the person permanently ceases to carry on the trade, the whole of the amount so far as not previously brought into charge to tax—

(a)is treated as arising, and

(b)is charged to tax,

immediately before the cessation.