Commentary

B5.326 Relief for fluctuating profits―introduction

Business tax
Business tax | Commentary

B5.326 Relief for fluctuating profits―introduction

Business tax | Commentary

Creative artists—receipts from 'creative works'

B5.326 Relief for fluctuating profits―introduction

For payments comprising royalties or lump sums actually receivable, in respect of copyright, designs, public lending right and other creative artistic works a claim can be made to average the profits1. The provisions do not apply where profits are calculated using the cash basis for small businesses from 2013/14 (see B2.112)2.

Under the rules, an individual can make an averaging claim if his profits from a qualifying trade, profession or vocation (called 'relevant profits') fluctuate from one tax year to the next3. References to relevant profits of a tax year

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