The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
The rules on closing years apply to unincorporated businesses. These rules apply equally to businesses using the simplified cash basis. See the Eligibility for the simplified cash basis guidance note.
See also Simon’s Taxes B4.105.
These rules apply when a trader ceases to trade.
Closing year rules are much simpler than the opening year rules. In the penultimate year (ie the tax year prior to the cessation of the trade), the normal current year basis rules apply, ie taxing profits of the 12-month accounting period ending in the penultimate tax year.
In the final tax year, the profits arising in the period from the day after the previous basis period ended to the date of cessation are taxed. In other words, on cessation of trade, any remaining profits are taxed, making sure there are no gaps or overlaps in the profits that are taxed. Overlap profit brought
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
This guidance note provides an overview of what conditions need to be met before a business is entitled to treat VAT incurred as input tax. This note should be read in conjunction with the other notes in the ‘Claiming input tax’ subtopic. For a flowchart outlining the procedure for claiming input
IntroductionThe CFC rules as outlined in this note apply to accounting periods beginning on or after 1 January 2013, the date upon which significant changes made by Finance Act 2012 became effective.From this date, the CFC rules also apply to foreign branches in respect of which an exemption
This guidance note explains how to calculate the amount of tax that arises under the lifetime charge. In general terms the lifetime charge will apply to individuals who transfer property into a trust that is subject to the relevant property regime. See the Chargeable transfers and Occasions of
What is a quoted company?Reference to a quoted company is usually to a company where the shares in the company are listed on the London Stock Exchange, any other international stock exchange, or on AIM or ICAP Securities and Derivatives Exchange (formerly the PLUS market and now known as ISDX) in
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.