Commentary

18.4 The opening years of the business

BUSINESSES vol 4(2) start-up, sale and purchase
| Commentary

18.4 The opening years of the business

| Commentary

18.4 The opening years of the business

As mentioned above, there are special rules for the opening years of a business and for the closing years.

The first year is taxed on the actual basis, that is, the trader is taxed on the profits of the business from its commencement date to the 5 April following (that is, the end of the tax year of commencement)1. Unless the accounting period of the business is the same as the tax year, this will involve an apportionment of the profits of the first accounting period2. For the second and subsequent years, the trader

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