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Hello, Thank you for your invaluable presentation of taxation thus far.
I am in confusion about what the tax year represents. For instance, it seem to me like the tax year which finishes on the 5th of April 2021 should be 2020/2021 tax year since the year covered are in 2020 and 2021. Can you please explain why it seem to be 2019/ 2020 instead. Does it mean that any given tax year is only treated a year after the actual year?Not sure where you are getting this idea from as the tax year 2019/20 runs from 6 April 2019 to 5 April 2020 and the tax year 2020/21 runs from 6 April 2020 to 5 April 2021 – as you state should be the case above.
The purpose of the tax year is that it is for this period that the income tax computation and indeed the CGT computation is prepared.Thank you for clarifying. I am currently studying for the December, 2020.The reason why I was concerned was because the latest materials on OT was said to be valid until march 2021. The property assessment assessment calculation however was seem to be for the 2019/2020 computation i.e. 25% for Interest charge and (20% of ) 75% for the interest charge relief. I didn’t realise the calculation was for 2019/2020 and not 2020/2021 which represents the presents tax year.
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