Section 51 | Companies treated as same person as individual

(1)This section applies for the purposes of sections 48(2) and 49(6) if, as a result of section 50(4), a company is treated as the same person as an individual.

(2)A loss in an accounting period may be determined by reference to profits and losses made by the individual in the trade in tax years (within the meaning of the Income Tax Acts).

(3)For this purpose—

(a)profits and losses made by the individual in tax years may be allocated (in whole or in part) to accounting periods in a way that is just and reasonable, and

(b)if a tax year or part of a tax year is not covered by any accounting period—

(i)the period covered by the tax year or part may be treated as if it were an accounting period, and

(ii)in accordance with paragraph (a), profits and losses may be allocated to it.

(4)Section 70(2), (3)(a), (4)(a) and (5) of ITA 2007 applies for the purpose of determining the individual's profits and losses in the trade for tax years.