Section 239A | Spreading on leaving cash basis

(1)This section applies if—

(a)the cash basis applies in relation to a trade for a tax year, and

(b)the cash basis does not apply in relation to the trade for the following tax year.

(2)Any adjustment income is spread over 6 tax years as follows.

(3)In each of the 6 tax years beginning with that in which the whole amount of the adjustment income would otherwise be chargeable to tax, an amount equal to one-sixth of the amount of the adjustment income is treated as arising and is charged to tax.

(4)This section is subject to any election under section 239B (election to accelerate charge).