[271A Basis of calculation of profits: GAAP required]
Income Tax (Trading and Other Income) Act 2005 (2005 c 5) | Legislation

[Basis of calculation of profits]

[271A  Basis of calculation of profits: GAAP required]

[(1)     The profits of a property business for a tax year must be calculated in accordance with GAAP if condition A, B, C, D or E is met.

(2)     Condition A is that the business is carried on at any time in the tax year by—

(a)     a company,

(b)     a limited liability partnership,

(c)     a corporate firm, or

(d)     the trustees of a trust.

(3)     For the purposes of subsection (2) a firm is a “corporate firm” if a partner in the firm is not an individual.

(4)     Condition B is that the cash basis receipts for the tax year exceed £150,000.

(5)     In subsection (4) “the cash basis receipts

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