I am preparing the tax returns of the partners where the partnership changed its year end from 31st March 2019 to 30th June 2019
I have a 15 month period and I think the basis periods are
1. for 2018/2019, 12/15th's of the profit for the period to 30/6/19
2. for 2019/20 , 12/15ths of the profit for the period to 30/6/19
3. for 2020/2021, 12 months to 30/6/2020
How do I work out the overlap relief?
Replies (4)
Please login or register to join the discussion.
Draw it out on a time line and it's obvious.
9/15 of the long period which is the bit that's been assessed twice.
If only people wrote books explaining how the tax legislation works - or perhaps wrote technical guidance that they put on the internet for professionals to read. Or, perhaps, packaged it into courses and had exams at the end.
I think there could be demand for the above. Whoever implements it could make some money.
You work it out separately for each partner - find the profit of the long period but this is NET of capital allowances, apportion between the partners in PSR - 9/15ths will give you the individual overlap relief for each partner.