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Hi,
can you, please, be kind, and clarify why in the example 5 we take only the 4 month profit and we deduct the overlap profit from it and in the example worked in the video we take the profit from last tax year + the 4 month profit until 31.01.2018 and then we deduct the overlap profit.
What I am calculation wrong at the last tax year period?
Thanks
Basic rule is that, if last complete accounting period end date and business cessation date fall in the same tax year, then profits will be combined & then tax will be calculated. However, if last complete accounting period end date & business cessation date fall in different tax years, then the periods will be taxed differently.
For the example you are referring to, i guess the dates will be some what like these:
Example 5:
Last complete accounting period end date = 31 Jan 2017
Business cessation date = 31 May 2017
The dates fall in different tax years, hence taxed separately.Worked Example:
Last complete accounting period end date = 31 Sep 2017
Business cessation date = 31 Jan 2018
The dates fall in the same tax year, hence taxed together.
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