Commentary on Sections Overview Overview Section 197: Meaning of “accounting date”
818.The basis period rules operate by reference to the accounting date falling in the tax year. This section defines the key term “accounting date”. It is based on sections 60(5) and 62(2) of ICTA.
819.Subsection (1) gives the main rule. Sub-paragraph (b) deals with the case where two periods of account end in the same tax year and so there are two accounting dates.
820.Subsection (2) deals with two particular cases outside the main rule.
821.Subsection (2)(a) refers to section 211. That provision applies if the accounts are made up to a particular day in the year rather than a particular date. See the commentary on section 211 and Change 56 in Annex 1.
822.Subsection (2)(b) refers to section 214. That provision extends the definition of “accounting date” to include the date in the tax year to which accounts are treated as being prepared under the change of accounting date rules. That can arise when the period of account ending with the new date starts in, say, year six and ends in year eight: then an accounting date - the new date - is treated as falling in year seven.