Section 7C | Rule if there is a late accounting date

(1)This section applies if, in a tax year (“the relevant tax year”), the trader—

(a)does not start to carry on the trade or does so before 1 April,

(b)does not permanently cease to carry on the trade, and

(c)has an accounting date that is 31 March or 1, 2, 3 or 4 April.

(2)For the purposes of this Chapter—

(a)the profits or losses of the trade of the period beginning immediately after the accounting date and ending with 5 April in the relevant tax year are treated as nil, and

(b)the actual profits or losses of the trade of that period are treated as arising in the following tax year.

(3)In this section, “accounting date” in relation to a tax year means—

(a)the date in the tax year to which accounts are drawn up, or

(b)if there are two or more such dates, the latest of them.