.png)
.png)
A look at basis periods.
KEY POINTS
- Apportioning profits in the first year of a business.
- Rules for changing the accounting date.
- Overlap relief may increase losses on cessation of the trade.
- Capital allowances basis periods follow the accounting ones.
For individuals and partnerships in business a fundamental concern is when their trading profits are taxable. In most years this is straightforward but for the first and final years of a trade or for years involving a change of accounting date things become more complex.
Once a basis period is identified the taxable profit or loss may be allocated to it on a time basis from the tax computations.
Often the easiest way to deal with basis periods is to draw a diagram to help visualise the overlap periods and make sure there...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
