Corporation tax financial year (UK)
A corporation tax financial year runs from 1 April to the following 31 March and is named for the calendar year in which it starts. Corporation tax is assessed by the company’s accounting period, which can cross a financial-year boundary. Accounting-period profits are apportioned between financial years by days when applying the relevant rates. A financial year is distinct from the company’s period of account and its corporation-tax accounting period.
Worked example
A company has a 365-day accounting period from 1 January to 31 December 2025 and taxable profits of £73,000. On a time basis, 90 days fall in financial year 2024 and 275 in financial year 2025. The apportioned amounts are £18,000 and £55,000 respectively; apply each applicable financial year’s rules separately.
Common mistake
Assuming the financial year always matches the company’s accounting period, or using individual sales dates in place of the normal time apportionment between financial years.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Supporting | June 2026–June 2027 |