Basis Periods...

Revision time folks ....

Year 1:

From commencement of trade to end of tax year.

Year 2:

a) If the "accounting date" is in the tax year and is 12 months or less, then it is the first 12 months of trading

b) If the "accounting date" in the tax years and is more than 12 months, then the period is the accounting date less 12 mths

ie. 01/07/2010 - 30/06/2011

c) If the "accounting date" does not fall in the 2nd tax year, then it is:

06/04/x1 - 05/04/x2

Year 3:

Actual dates of the "accounting period"

Overlap profits can only be deducted when the business cessates

Cessation period is from the beginning of the previous basis period to the end date.