½Û×ÓÊÓƵ

The allocation of accounting profits to basis periods for tax purposes was reformed by FA 2022, s 7, Sch 1 and ITTOIA 2005, ss 196–220 (Ch 15) is repealed from the tax year 2024/25. The rules which apply for the tax year 2024/25 onwards are set out in B8.101A and the rules for the transitional tax year of 2023/24 including businesses starting in 2023/24 are set out in B8.101B. The details below therefore only apply for tax year up to and including 2023/24 but the basis period for 2023/24 is set down in statute by FA 2022, Sch 1, Pt 6, para 65 so a change of accounting date in 2023/24 does not need to meet the qualifying conditions noted below.

The 'accounting date' in relation to a tax year was the date in the tax year to which the accounts are drawn up¹. Where two or more periods of account end in the same tax year, the accounting date was the latest of these dates².