Commentary

18.5 The closing years of the business

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

18.5 The closing years of the business

| Commentary

18.5 The closing years of the business

As with the opening years, there are special rules for the final tax year of the business. On discontinuance, whether the trader is selling the business or closing it down, the trader will be assessed on all the trading profit from the end of the last accounting period to be taxed until the date of discontinuance (this is effectively a ‘sweeping-up’ assessment)1. The trader will be able to deduct from this figure any ‘overlap profit’ arising from the opening years of the business2, but this may be little consolation for the fact that

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