![180277](https://www.taxation.co.uk/images/default-source/woodwing/180277.png?sfvrsn=5e9b1476_2)
Key points
- Basis period reform (BPR) introduces a fundamental change to the way in which partnerships and unincorporated businesses are taxed.
- The new rules are in place in this 2024-25 tax year following on from the transitional year 2023-24.
- The 2023-24 tax year is a transitionary year enabling the shift from the old to the new basis in 2024-25.
- Non-trading income such as bank interest and rental income allocated to a partner will follow the same treatment as trading profits however there will be no opportunity to spread over five years.
Basis period reform (BPR) introduces a fundamental change to the way in which partnerships (including limited liability partnerships (LLPs)) and unincorporated businesses (including sole traders) are taxed on their taxable profits where the accounting year end is not co-terminus (co-terminus includes year ends ending 31 March through to 1-5 April) with the tax year. ...
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