Commentary

B8.105 Basis periods—final tax years

Business tax
Business tax | Commentary

B8.105 Basis periods—final tax years

Business tax | Commentary

B8.105 Basis periods—final tax years

The basis period for the tax year in which a person permanently discontinues a trade begins on the day after the end of the basis period for the previous tax year and ends on the date of discontinuance1.

Example 1

B has been in business for many years and made up his accounts to 31 March each year. He ceases to trade on 31 December 2019.

The basis periods for the last two years are:

  1.  

    •     2018/19 — year to 31 March 2019

  1.  

    •     2019/20 — period to 31 December 2019

For the penultimate year, if a valid

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