Income Tax (Trading and Other Income) Act 2005 section 133

Meaning of "relevant period"

Section 133 defines what is meant by a "relevant period" in relation to a trade for the purposes of this chapter.

• A "relevant period" is the timeframe used to measure trading income and expenditure for tax purposes
• It is normally the period of account for which the trade's accounts are drawn up
• Where no accounts have been drawn up for a period, the basis period for the tax year is used instead
• This definition applies throughout the chapter and underpins how various trading income rules are applied