(ITTOIA 2005, s. 221ff.)

(In-Depth: ¶272-300ff.; ¶268-300)

Two-year averaging ⁽²⁾⁽³⁾

From 2016–17, marginal relief is removed and full two-year averaging relief is available where the profits of one year are 75% or less of the profits of the other year or the profits of one (but not both) of the years are nil.

Five-year averaging ⁽²⁾

For 2016–17 and subsequent years, qualifying individuals are able to claim to average trading profits for income tax purposes over five consecutive tax years where the ‘volatility’ condition is met.

The volatility condition is that: