Section 68 Short-lived businesses
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(1) This section shall apply to a trade or profession-
(a) which has been set up and commenced in a year of assessment,
(b) which is permanently discontinued within the second year of assessment following that year of assessment, and
(c) in respect of which the aggregate of the profits or gains on which any person has been charged, or would be charged to income tax, by virtue of any other provision of the Income Tax Acts, exceeds the aggregate of the profits or gains arising in the period beginning on the date of set up and commencement and ending on the date of permanent discontinuance of the trade or profession.
What is short-lived business relief?
(1) If you operated a short-lived business that permanently ceased in its third tax year, you are entitled to relief if the interaction of the commencement (section 66) and cessation (section 67) rules results in excess profits being assessed....
(2) Any person chargeable to income tax on the profits or gains of a trade or profession to which this section applies shall be entitled, on giving notice in writing to the inspector on or before the specified return date (within the meaning of section 950) for the year of assessment in which the trade or profession is permanently discontinued, to have the assessment for the year of assessment immediately preceding that year reduced by the amount by which the amount of the assessment for that immediately preceding year exceeds the full amount of the profits or gains arising in that same year.
(3) Subsection (2) of section 67 shall apply to this section as if references in that subsection to subsection (1) of that section included references to this section.
