Commentary

B6.212A Spreading of adjustment income—leaving the cash basis

Business tax
Business tax | Commentary

B6.212A Spreading of adjustment income—leaving the cash basis

Business tax | Commentary

B6.212A Spreading of adjustment income—leaving the cash basis

Where a business leaves the cash basis for unincorporated property businesses (see B6.202C) any adjustment income (see B6.212) may be spread over six tax years1. This mirrors the rules for trading income in B2.116. In each of the six tax years beginning with the one in which the whole amount of the adjustment income would otherwise be chargeable, the amount taxable equals one-sixth of the adjustment income2.

A property business owner may accelerate the charge to tax by electing for any part3 of the outstanding adjustment income to be taxed in a particular

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