Basis period (2nd yr) for a partnership, please any suggestions would be really helpful

Basis period (2nd yr) for a partnership, please...

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Hello all,

I have a query about Basis Period for a partnership.  I was filling the Partnership Tax Return for the LLP for Tax Return Year 2.  The question about the Basis Period has got me a bit flummoxed really.

The partnership started trading on 9th July,2013 and it's first accounting period ended on 31st July, 2014.  As I understand it, I believe the Basis Periods for the partnership would look like this -

Tax Yr 1 (2013-14)  -  9/7/2013 to 5/4/2014

Tax Yr 2 (2014-15)  -  1/8/2013 to 31/7/2014  - Should the period be from 1/8/2013 or 9/7/2013?

Tax Yr 3 (2015-16)  -  1/8/2014 to 31/7/2015

The Basis Period for Tax Yr 2 is the one where I'm getting confused whether to start it from 1/8/2013 or 9/7/2013.  I feel 1/8/2013 is correct as due to CYB the business does have an accounting period which ends in the tax year 2 which is the 12 months to 31/7/2014.  

If I consider the start date for the Basis Period in Tax Yr 2 as 1/8/2013, should I then adjust the profit from 9/7/2013 to 1/8/2013 in the Self Assessment Returns of the partners as a minus figure so as to arrive at the 12 months profit share for the partner's?

Any help with this query will be greatly appreciated.

Thanks in advance for your comments on this query.

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By VP
07th Jul 2015 17:42

There is no basis period in the partnership tax return. it is the year/period end that falls in the tax year you are doing the return for. The basis period is only in the SA forms for the partners.

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