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Assuming that UITF 40 is applicable and that there are additional profits to be brought in for a company, we understand that the amount that can be relieved under the spreading provisions is based on the uplift at the beginning of the first accounting period affected. If for accounting purposes it is deemed that the uplift is not material, so no prior year adjustment is made, can the spreading provisions still be applied for tax purposes? Is the position different for sole traders and partnerships?
Assuming that UITF 40 is applicable and that there are additional profits to be brought in for a company we understand that the amount that can be relieved under the spreading provisions is based on the uplift at the beginning of the first accounting period affected. If for accounting purposes it is deemed that the uplift is not material so no prior year adjustment is made can the spreading provisions still be applied for tax purposes? Is the position different for sole traders and partnerships?
Where a service business ceases trading and merges with another firm is there any spreading available or does the cessation of the business prevent this? Partners in the old firm have become partners in the new firm.
Query T16 821 — Puzzled.
Reply by Thicket:
The starting point for calculating income or profits chargeable to tax is the requirement that the...
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