Hi,
Partnership started 14/9/1994. It now ceased trading and I am trying to find the overlap profit for each partner.
The information that I have is the share of profit for accounts year end 15/9/1996 was £19,074, TR 5/4/1996. I have no figures for the previous year.
share of profit for year end 15/9/1997 was £22,799.
What should the overlap relief be, £19074/365x201?
Thank you
Replies (11)
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I have requested in the past this information from HMRC and they have given me the figure.
I assume that there was no entry in the box on the tax return, which is why HMRC do not have any figure to provide.
The oldest tax return I had for a client was 2007, the overlap figure was in the carried forward box.
HMRC confirmed the same figure was on the 1996 tax return.
I do wonder if your client will get a tax check if you claim overlap relief without stating the brought forward amounts on historic tax returns.
No, assuming that the trade started with the partnership (and the partnership did not start say by conversion of a sole trade.... ooh, that could be interesting!)
Starting (trade) after 5 April 1994 meant they went straight onto current year basis. I'm surprised it's not on the (personal) TRs before you (it won't be on the partnership one), but you need the previous figures. Or more info re commencement.
1994/95 tax would be based on commencement to 5/4/95. 1995/96 tax would be based on first set of accounts (y/e 14(?)/9/95... I am finding your dates confusing).
Thus it's the 14(?)/9/95 profit that has been taxed twice (in part) and it's that double tax that is the basis of the overlap relief. You say you have the 5/4/96 tax return. That's the one you need, as it has the 14(?)/9/95 profits.
One more point. IIRC (there was a thread on this recently), TOLR was calculated before CAs. You don't have TOLR, you have real OLR. So that would be based on profit after CAs.
I have requested the overlap figure for two clients in the last month and HMRC provided both.
Hold on, hold on... TR5/4/96, y/e 15/9/96? That's future year basis of assessment... that's from the 2035/36 tax year.