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In force since 2026-04-01, as the publisher states.
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Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.
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(1) Chapter 13 of Part 9A of TIOPA 2010 (controlled foreign companies: the low profit margin exemption) applies for the purposes of section 18G(1)(c) with the following modifications. (2) In section 371MB— (a) subsection (2) is to be omitted, and (b) references to the CFC's accounting profits for an accounting period are to be read as references to the adjusted relevant profits amount determined before any deduction for interest.
Propose a change(1) Chapter 14 of Part 9A of TIOPA 2010 (controlled foreign companies: the tax exemption) applies for the purposes of section 18G(1)(c) with the following modifications. (2) At step 1 in section 371NB(1)— (a) in the first paragraph, the reference to section 371TB of TIOPA 2010 is to be read as a reference to the assumption in section 18I(3)(b) above relating to the CFC's residence, and (b) the second paragraph is to be omitted. (3) References to the CFC's local chargeable profits arising in the accounting period are to be read as references to the adjusted relevant profits amount and, accordingly, sections 371NB(4) and 371NC(2) to (4) are to be omitted. (4) For the purposes of step 3 in section 371NB(1) the amount of the corresponding UK tax for the accounting period is to be determined in accordance with subsection (5) below; and section 371NE is to be omitted accordingly. (5) “The corresponding UK tax” is the amount of corporation tax which would be payable in respect of the adjusted relevant profits amount if it were subject in full to corporation tax, ignoring any credit which would be allowed against it under section 18(3) of TIOPA 2010 and assuming, where there is more than one rate of corporation tax applicable to period X, that it were chargeable at the average rate over period X.
Propose a change(1) The following sections make provision about a company in relation to which an election under section 18A has effect if there is a total opening negative amount in the case of the company at the beginning of the company's first relevant accounting period. (2) To determine for the purposes of this Chapter whether there is a total opening negative amount at the beginning of the company's first relevant accounting period, take the following steps. Step 1 Take the adjusted foreign permanent establishments amount in relation to the earliest affected prior accounting period in relation to which that amount is negative. Step 2 Add to the amount arrived at under step 1 the adjusted foreign permanent establishments amount in relation to the next affected prior accounting period (but not so as to cause the result to exceed nil). Step 3 Add to the amount arrived at under step 2 the adjusted foreign permanent establishments amount in relation to each remaining affected prior accounting period, starting with the earliest (but not so as to cause the result to exceed nil). If after the application of the preceding steps there is a negative amount for the last affected prior accounting period there is a total opening negative amount at the beginning of the company's first relevant accounting period of an amount equal to that negative amount. (3) In subsection (2) “affected prior accounting period” means— (a) the accounting period of the company in which the election under section 18A is made, and (b) any earlier accounting period of the company ending less than 6 years before the end of that accounting period. (4) For the purposes of subsection (2) the “adjusted” foreign permanent establishments amount is what the foreign permanent establishments amount would be if it were determined without reference to gains or losses which are chargeable gains or allowable losses for the purposes of corporation tax.
Propose a change(1) At the end of each relevant accounting period of the company (starting with the first) the total opening negative amount is to be reduced (or further reduced) by the amount of any aggregate relevant profits amount of the company for the accounting period (but not to below nil). (2) In any relevant accounting period of the company for which there is a reduction under subsection (1), section 18A(1) does not apply in relation to the aggregate relevant profits amount of the company for the accounting period. (3) But in the case of the last relevant accounting period of the company for which there is a reduction under subsection (1), section 18A(1) is disapplied by subsection (2) only in relation to so much of the aggregate relevant profits amount of the company for the accounting period as is equal to the total opening negative amount of the company at the beginning of the accounting period. (4) The company may, in its company tax return for that relevant accounting period, specify to which part of the aggregate relevant profits amount of the company for the accounting period section 18A(1) is to apply by virtue of subsection (3). (5) In this Chapter “aggregate relevant profits amount”, in relation to an accounting period, means the aggregate of the relevant profits amount in the case of each relevant foreign territory in relation to which there is a relevant profits amount for the accounting period. (6) This section is subject to section 18L.
Propose a change(1) If a streaming election has effect in relation to the company sections 18M and 18N apply (instead of section 18K). (2) For the purposes of this section “streaming election” means an election, made at the same time as the company's election under section 18A, which— (a) states that sections 18M and 18N are to have effect in relation to the company (instead of section 18K), and (b) specifies which of the territories that are relevant foreign territories in relation to the company are to be streamed territories for the purposes of the operation of sections 18M and 18N in relation to the company. (3) Subject to subsection (4), a streaming election is irrevocable. (4) A streaming election can be revoked at any time before the first relevant accounting period of the company. (5) A streaming election does not have effect unless the company, in the company tax return for the first relevant accounting period of the company, specifies how much of the amount eligible to be streamed to each streamed territory is to constitute for the purposes of sections 18M and 18N the streamed opening negative amount at the beginning of that relevant accounting period. (6) For the purposes of subsection (5) the amount eligible to be streamed to a territory by the company is the amount that would be the total opening negative amount of the company at the beginning of the first relevant accounting period of the company if at all material times the territory were the only relevant foreign territory in relation to the company.
Propose a change(1) At the end of each relevant accounting period of the company (starting with the first) the streamed opening negative amount in relation to a territory is to be reduced (or further reduced) by the amount of any relevant profits amount of the company for the territory for the accounting period (but not to below nil). (2) In any relevant accounting period of the company for which there is a reduction under subsection (1) in relation to a territory, section 18A(1) does not apply in relation to the relevant profits amount of the company for the territory for the accounting period. (3) But in the case of the last relevant accounting period of the company for which there is a reduction under subsection (1) in relation to a territory, section 18A(1) is disapplied by subsection (2) only in relation to so much of the relevant profits amount of the company for the territory for the accounting period as is equal to the streamed opening negative amount in relation to the territory at the beginning of the accounting period. (4) The company may, in its company tax return for that relevant accounting period, specify to which part of the relevant profits amount of the company for the territory for the accounting period section 18A(1) is to apply by virtue of subsection (3).
Propose a change(1) At the end of each relevant accounting period of the company (starting with the first) the residual opening negative amount is to be reduced (or further reduced) by the amount of any residual aggregate relevant profits amount of the company for the accounting period (but not to below nil). (2) For the purposes of this section the “residual opening negative amount”, at the beginning of the company's first relevant accounting period, is— (a) the total opening negative amount of the company at that time, less (b) the aggregate of the streamed opening negative amounts of the company at that time. (3) For the purposes of this section the “residual aggregate relevant profits amount”, in relation to an accounting period, means the amount (if any) by which— (a) the aggregate relevant profits amount of the company for the accounting period, exceeds (b) the aggregate of so much of any relevant profits amounts of the company for the accounting period as has effect to bring about a reduction under section 18M(1) for the accounting period. (4) In any relevant accounting period of the company for which there is a reduction under subsection (1), section 18A(1) does not apply in relation to the residual aggregate relevant profits amount of the company for the accounting period. (5) But in the case of the last relevant accounting period of the company for which there is a reduction under subsection (1), section 18A(1) is disapplied by subsection (4) only in relation to so much of the residual aggregate relevant profits amount of the company for the accounting period as is equal to the residual opening negative amount of the company at the beginning of the accounting period. (6) The company may, in its company tax return for that relevant accounting period, specify to which of the amounts forming part of the residual aggregate relevant profits amount of the company for the accounting period section 18A(1) is to apply by virtue of subsection (4).
Propose a change(1) This section applies if— (a) business carried on by a company (“the transferor”) through a permanent establishment in a territory outside the United Kingdom is transferred to a connected company that is (or later becomes) a UK resident company (“the transferee”), and (b) there is a transferred total opening negative amount in relation to the business transferred. (2) In a case where the transferor had not made an election under section 18A before the transfer took place, or such an election had not had effect before that time, the “transferred total opening negative amount” is the amount that would have been the total opening negative amount in the case of the transferor at the beginning of the transferor's first relevant accounting period if— (a) the only business carried on by the transferor was the business transferred, (b) the transfer had not taken place, (c) the transferor's first relevant accounting period had begun on the day after the transfer day, and (d) any reference in section 18J(3) to the accounting period in which the election is made were a reference to the period beginning with the accounting period in which the transfer took place and ending with the transfer day. (3) In a case where an election made by the transferor under section 18A had effect before the transfer took place, the “transferred total opening negative amount” is— (a) the amount that would have been the total opening negative amount in the case of the transferor on the transfer day if the accounting period in which the transfer took place had ended on that day (the “remaining total opening negative amount”), less (b) the amount that would have been the remaining total opening negative amount if the transferor had never carried on the business transferred. But the transferred total opening negative amount cannot be below nil. (4) In a case where— (a) an election made by the transferee under section 18A first has effect after the transfer takes place, and (b) the accounting period of the transferee in which the transfer took place is an affected prior accounting period for the purposes of section 18J(2), there is to be added to the adjusted foreign permanent establishments amount in relation to that accounting period a negative amount equal to so much (if any) of the transferred total opening negative amount as is attributable to profits or losses arising after the beginning of the earliest affected prior accounting period of the transferee. (5) In a case where an election made by the transferee under section 18A had effect before the transfer took place, sections 18K to 18N have effect in relation to the transferee and the transferred total opening negative amount as if— (a) any reference to the total opening negative amount were a reference to the transferred total opening negative amount, (b) any reference to the first relevant accounting period were a reference to the period beginning with the day after the transfer day and ending immediately before the start of the next accounting period of the transferee, and (c) the requirement in section 18L(2) that a streaming election be made at the same time as the company's election under section 18A did not apply. (6) Where for the purposes of this section it is necessary to apportion the profits and losses for any accounting period to different parts of that period, that apportionment is to be made on a just and reasonable basis. (7) Any amount included in a transferred total opening negative amount is to be disregarded in the application of sections 18J to 18N in the case of the transferor after the transfer day. (8) In this section “the transfer day” means the day on which the transfer of the business takes place.
Propose a change(1) If a company is a small company at any time during a relevant accounting period, there is for that relevant accounting period no relevant profits amount or relevant losses amount for the purposes of this Chapter in relation to any relevant foreign territory that is not a full treaty territory. (2) If a company is a close company at any time during a relevant accounting period, so much of the profits of the company for the relevant accounting period as derives from gains which are chargeable gains for the purposes of corporation tax is not to be regarded as forming part of a relevant profits amount or relevant losses amount of the company for the purposes of this Chapter. (3) Subsection (2) does not apply in relation to— (a) a chargeable gain accruing on the disposal of an asset used, and used only, for the purposes of a trade so far as carried on by the company in the relevant foreign territory through the company's permanent establishment there, or (b) a chargeable gain accruing on the disposal of currency or of a debt within section 252(1) of TCGA 1992 where the currency or debt is or represents money in use for the purposes of a trade so far as carried on by the company in the relevant foreign territory through the company's permanent establishment there.
Propose a change(1) So much of the profits or losses of a company as consists of profits or losses arising from basic life assurance and general annuity business ... is not to be regarded as forming part of a relevant profits amount or relevant losses amount of the company for the purposes of this Chapter. (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) Any election under section 107(4) of FA 2000 (general insurance: adjustment for technical provision) is to be ignored for the purposes of this Chapter.
Propose a change(1) For the purposes of this Chapter a territory is a “full treaty territory” if— (a) double taxation arrangements have been made in relation to the territory, and (b) the arrangements contain a relevant non-discrimination provision. (2) “Relevant non-discrimination provision” means a provision to the effect that the taxation on a permanent establishment of an enterprise of a state which is party to the arrangements (a “contracting state”) is not to be less favourably levied in any other contracting state than the taxation levied on enterprises of that other contracting state carrying on the same activities.
Propose a changeIn this Chapter— “company tax return” has the same meaning as in Schedule 18 to FA 1998 (see paragraph 3(1)); “double taxation arrangements” means arrangements that have effect under section 2(1) of TIOPA 2010; “the OECD model” means the Model Tax Convention on Income and on Capital approved by the OECD Council on 18 November 2025 as it may be amended or replaced from time to time; “small company” means a micro or small enterprise, as defined in the Annex to Commission Recommendation 2003/361/EC of 6 May 2003.
Propose a change(1) This section applies for the purposes of the charge to corporation tax on income if a non-UK resident company carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom. (2) The company's “chargeable profits” are its profits that are— (a) of a type mentioned in subsection (3), and (b) attributable to the permanent establishment in accordance with sections 20 to 24. (2A) But the company's “chargeable profits” do not include— (a) profits of a trade of dealing in or developing UK land (see section 5B), (b) profits of a UK property business, (c) profits consisting of other UK property income, or (d) profits arising from loan relationships or derivative contracts that the company is a party to for the purposes of its UK property business or for the purposes of enabling it to generate other UK property income. (3) The types of profits referred to in subsection (2)(a) are— (a) trading income arising directly or indirectly through or from the establishment, and (b) income from property or rights used by, or held by or for, the establishment. (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) For the purposes of the charge to corporation tax on chargeable gains accruing to the company, see section 2B(3) of TCGA 1992. (5) That subsection provides (among other things) that the gains are chargeable to corporation tax only so far as they are attributable to the permanent establishment in accordance with sections 20 to 24 of this Act.
Propose a change(1A) Sections 21 and 24— (a) apply for the purpose of determining the amount of profits of a non-UK resident company that are attributable to a permanent establishment of the company in the United Kingdom, and (b) contain provision about the separate enterprise principle. (1B) So far as provisions in those sections are in substantially the same terms as Article 7(2) of the Model Tax Convention on Income and on Capital approved by the OECD Council on 18 November 2025 they are to be read and given effect, so far as possible, in a way that is consistent with— (a) the 2010 Report on the Attribution of Profits to Permanent Establishments published by the OECD on 22 July 2010, (b) the OECD’s commentary on Article 7(2) approved by the OECD Council on 18 November 2025, (c) the Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations 2022, published by the OECD on 20 January 2022, and (d) the Additional Guidance on the Attribution of Profits to Permanent Establishments published by the OECD in March 2018. (1C) Any reference in subsection (1B) to a document published by the OECD, or approved by the OECD Council, is to that document as it may be amended or replaced from time to time. (1D) And any such document is to be read in accordance with any reservation, declaration or election made by the United Kingdom in relation to that document. (1E) The Treasury may by regulations make provision— (a) for subsection (1C) not to apply in relation to any specified amendment or replacement of a document referred to in subsection (1B), (b) about the effect of any provision of a document referred to in subsection (1B) that has been amended or replaced on or after 26 November 2025 where that provision is elective (however expressed), and (c) amending subsection (1B) to add a reference to a further document published by the OECD. “Specified” means specified in regulations. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Propose a change(1) The profits of the non-UK resident company that are attributable to the permanent establishment are those that the establishment might be expected to make if it were a separate and independent enterprise engaged in the same or similar activities under the same or similar conditions, taking into account the functions performed, assets used and risks assumed by the non-UK resident company through the permanent establishment and through the other parts of the non-UK resident company. (2) In applying subsection (1) assume that— (a) the permanent establishment has the same credit rating as the non-UK resident company, and (b) the permanent establishment has such equity and loan capital as it could reasonably be expected to have in the circumstances specified in that subsection. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Propose a change(1) This section makes provision in a case where the non-UK resident company mentioned in subsection (1) of section 21 is an insurance company. (2) In accordance with the principle in that subsection, the permanent establishment is treated as holding— (a) the same or a similar quantity of assets, and (b) assets of the same or similar description, as would have been held by a separate and independent enterprise acting as mentioned in that subsection. (3) The assets which the permanent establishment is treated as holding in accordance with the principle in that subsection may include a proportion of assets held by the company. (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Propose a changeIn this Part, except in so far as the context otherwise requires— (a) references to a trade include an office, and (b) references to carrying on a trade include holding an office.
Propose a change(1) This Part applies the charge to corporation tax on income to— (a) the profits of a trade (see Chapter 2), and (b) post-cessation receipts arising from a trade (see Chapter 15). (2) Chapters 3 to 14 contain rules relevant to tax under this Part. (3) Chapter 16 contains rules that give priority to provisions outside this Part in relation to certain matters that fall within it. (4) This Part needs to be read with Parts 19 (general exemptions) and 20 (general calculation rules).
Propose a changeThe charge to corporation tax on income applies to the profits of a trade.
Propose a change(1) Farming or market gardening in the United Kingdom is treated for corporation tax purposes as the carrying on of a trade or part of a trade (whether or not the land is managed on a commercial basis and with a view to the realisation of profits). (2) All farming in the United Kingdom carried on by a company, other than farming carried on as part of another trade, is treated for corporation tax purposes as one trade. (3) This section does not apply to farming or market gardening by an insurance company on land which is an asset held by the company for the purposes of its long-term business. (4) In the case of farming carried on by a company as a member of a firm, this rule is explained by section 1270(1).
Propose a change(1) The commercial occupation of woodlands in the United Kingdom is not a trade or part of a trade for any corporation tax purpose. (2) For this purpose the occupation of woodlands is commercial if the woodlands are managed— (a) on a commercial basis, and (b) with a view to the realisation of profits. (3) See also sections 208 and 980 (which, when read with this section, secure that profits or losses from the commercial occupation of woodlands in the United Kingdom are ignored for corporation tax purposes).
Propose a change(1) The commercial occupation of land in the United Kingdom is treated for corporation tax purposes as the carrying on of a trade or part of a trade. (2) For this purpose the occupation of land is commercial if the land is managed— (a) on a commercial basis, and (b) with a view to the realisation of profits. (3) This section does not apply— (a) to farming or market gardening (which is dealt with by section 36), (b) if the land is being prepared for forestry purposes, (c) if the land comprises woodlands (which is dealt with by section 37), or (d) to the occupation by an insurance company of land which is an asset held by the company for the purposes of its long-term business.
Propose a change(1) Profits or losses arising out of land in the case of a concern to which this section applies are calculated as if the concern were a trade. (2) Any profits arising out of the land are treated for the purposes of section 35 as profits of a trade. (3) Any losses arising out of the land are treated for the purposes of Chapter 2 of Part 4 of CTA 2010 (trade loss relief), ... Part 5 of that Act (group relief) and Part 5A of that Act (group relief for carried forward losses), as losses of a trade carried on in the United Kingdom. (4) The concerns to which this section applies are— (a) mines and quarries (including gravel pits, sand pits and brickfields), (b) ironworks, gasworks, salt springs or works, alum mines or works, waterworks and streams of water, (c) canals, inland navigation, docks and drains or levels, (d) rights of fishing, (e) rights of markets and fairs, tolls, bridges and ferries, (f) railways and other kinds of way, and (g) a concern of the same kind as one specified in paragraph (b), (c), (d) or (e). (5) But this section does not apply to a concern— (a) if it is carried on by an insurance company on land which is an asset held by the company for the purposes of its long-term business, or (b) if section 38 (commercial occupation of land other than woodlands) applies to the occupation of the land out of which the profits or losses arise.
Propose a change(1) If a credit union— (a) makes loans to its members, or (b) invests its surplus funds (by placing them on deposit or otherwise), that is not treated, in calculating the credit union's income, as the carrying on of a trade or part of a trade. (2) In this section “surplus funds” means funds not immediately required for the credit union's purposes.
Propose a change(1) This section applies where— (a) a company (“the paying company”) makes a payment to, or for the benefit of, a director of the paying company in respect of the director’s employment as a director of the paying company, (b) the payment would otherwise be employment income of the director chargeable to tax under Part 2 of ITEPA 2003, (c) the director was or is a member of a firm, or was appointed by a company (“the appointing company”) other than the paying company, and (d) condition A or B is met. (2) The payment is to be treated for corporation tax purposes as a receipt of— (a) a trade carried on by the firm, or (b) a trade carried on by the appointing company. (3) Condition A applies where the director is a member of a firm, and is that— (a) the director carries on a profession, (b) being a director of a company is a normal incident of that profession and of membership of the firm, (c) the director is required by the terms of the partnership agreement to account to the firm for the payment, and (d) the amount of the payment is insubstantial, compared with the total amount brought into account as receipts when calculating the firm’s profits. (4) Condition B applies where the director is appointed by a company, and is that— (a) the profits of the appointing company are within the charge to corporation tax, (b) by virtue of an agreement with the appointing company, the director is required to account for the payment to that company, and (c) either subsection (5) or subsection (6) applies to the appointing company. (5) This subsection applies if the appointing company had the right to appoint the director by virtue of its shareholding in, or an agreement with, the paying company. (6) This subsection applies if the appointing company is not one over which— (a) the director has control, or (b) any person connected with the director has control, or (c) the director and any persons connected with him together have control. (7) For the purposes of subsection (6) the following persons are connected with the director: the spouse, civil partner, parent, child, son-in-law or daughter-in-law of the director.
Propose a change(1) This section applies where— (a) a payment is received by an individual who carries on a profession in partnership, (b) the payment is made to the individual in his or her capacity as an employee or office-holder, but is not made in respect of employment as a director of a company, (c) the payment would otherwise be employment income of the individual chargeable to tax under Part 2 of ITEPA 2003, and (d) the conditions in subsection (3) are met. (2) The payment is to be treated for corporation tax purposes as a receipt of a trade carried on by the firm. (3) The conditions referred to in subsection (1)(d) are that— (a) the time spent by the individual in performing the duties of the office or employment is insubstantial compared with the time spent by the individual in carrying on the profession, (b) the office or employment is related to the profession carried on by the individual, (c) the amount of the payment is insubstantial compared with so much of the total amount brought into account as receipts when calculating the firm’s profits as is attributable to the individual, and (d) the individual is required by the terms of the partnership agreement to account to the firm for the payment and does so.
Propose a change(1) This section applies if a company starts or ceases to be within the charge to corporation tax in respect of a trade. (2) The company is treated for the purposes of this Part— (a) as starting to carry on the trade when it starts to be within the charge, or (b) as ceasing to carry on the trade when it ceases to be within the charge.
Propose a change(1) This section applies if — (a) in the course of carrying on a trade a company (“the trader”) supplies, or is concerned in the supply of, goods sold or used on premises occupied by another person, (b) the trader has an estate or interest in the premises, (c) the estate or interest is dealt with as property employed for the purposes of the trade, and (d) receipts and expenses in connection with the premises would otherwise be brought into account in calculating the profits of a property business of the trader. (2) Both the receipts and the expenses are instead brought into account in calculating the profits of the trade. (3) Any apportionment of receipts or expenses that is necessary because— (a) the receipts or expenses do not relate only to the premises, or (b) the above conditions are met only in relation to part of the premises, is to be made on a just and reasonable basis.
Propose a change(1) This section applies if— (a) a company (“the trader”) carries on material activities connected with the operation of a caravan site, (b) the activities are, or are part of, a trade, and (c) receipts from, and expenses of, lettings of caravans or pitches for caravans on the site would otherwise be brought into account in calculating the profits of a property business of the trader. (2) The trader may instead bring both the receipts and the expenses into account in calculating the profits of the trade. (3) But if the conditions in subsection (1)(a) and (b) are met for only part of an accounting period of the trader, subsection (2) applies only to the receipts and expenses that would otherwise be brought into account in calculating the profits of the property business for that part of the accounting period. (4) In this section— “caravan site” means— land on which a caravan is stationed for the purposes of human habitation, and land which is used in conjunction with land on which a caravan is so stationed, and “letting” includes a licence to occupy.
Propose a change(1) This section applies if— (a) a company (“the trader”) carrying on a trade obtains receipts from a letting of business accommodation that is temporarily surplus to requirements (see subsections (3) and (4)), (b) the accommodation is not held as trading stock, (c) the receipts are in respect of part of a building of which another part is used to carry on the trade, (d) the receipts are relatively small, and (e) the receipts, and the expenses of the letting, would otherwise be brought into account in calculating the profits of a property business of the trader. (2) The trader may instead bring both the receipts and the expenses into account in calculating the profits of the trade. (3) Accommodation is temporarily surplus to requirements only if— (a) it has been used within the last 3 years to carry on the trade or acquired within the last 3 years, (b) the trader intends to use it to carry on the trade at a later date, and (c) the letting is for a term of not more than 3 years. (4) If accommodation is temporarily surplus to requirements at the beginning of an accounting period, it continues to be temporarily surplus to requirements until the end of that period. (5) If under this section any of the receipts from and expenses of a letting are brought into account in calculating the profits of the trade, all subsequent receipts from and expenses of the letting must be dealt with in the same way (but only so long as this section continues to apply). (6) In this section “letting” includes a licence to occupy.
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