Taxes Consolidation Act 1997 section 74

Case IV: basis of assessment

Section 74 sets out how income chargeable under Case IV of Schedule D is to be computed and requires the taxpayer to disclose the nature and basis of computation of such profits or gains.

• Case IV income is computed on the full amount of profits or gains arising in the year of assessment, or on an average over a period not exceeding one year, as the inspector may direct
• The nature (i.e. the source) of the Case IV profits or gains must be stated to the inspector
• The basis on which the amount has been computed, including any averaging, must also be disclosed
• Every such statement and computation must be made to the best of the knowledge and belief of the person receiving or entitled to the profits or gains