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A higher rate tax self-employed client has made a £30,000 profit in the 12-month period to 30 September 2000 in the buying and converting of a property, leading to sale. His trade has no connection with this venture, for which there is no doubt that Schedule D rather than capital gains tax applies.
However, our concern relates to the split year treatment for the purposes of the 2000 tax return. Now that the account has been prepared, our initial thought was to apportion the net profit as £15,000 in the 2000 return and £15,000 in 2001.
A higher rate tax self-employed client has made a £30 000 profit in the 12-month period to 30 September 2000 in the buying and converting of a property leading to sale. His trade has no connection with this venture for which there is no doubt that Schedule D rather than capital gains tax applies.
However our concern relates to the split year treatment for the purposes of the 2000 tax return. Now that the account has been prepared our initial thought was to apportion the net profit as £15 000 in the 2000 return and £15 000 in 2001.
However substantial expenditure was incurred in the 6-month period to 5 April 2000 and had we been presented with details at that time and immediately completed the return a substantial tax refund could by now have been secured by virtue of the losses (carried...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
