The basics of basis period reform: Part 2 – transitional rules

In the first of my two articles on basis period reform aimed at students who are sitting their examinations in 2024 we looked at the rules that would apply to the trading profits of existing sole traders and partners from tax year 2024-25 how a new sole trader or partner who starts trading after 5 April 2023 would be dealt with and what happened to existing sole traders and partners who ceased trading in tax year 2023-24.

We did not however deal with sole traders and partners who would be subject to the transitional rules in tax year 2023-24. This was partly because articles shouldn’t exceed a certain length but also because it is good to allow basic concepts time to sink in before adding more complexity.

In the second of my two articles on basis period reform we will run through how we...