Coterminous Periods of Account - Groups

YYazan11y ago

Evening, Very simple question but I have seen a question or two which makes me just want to clarify my assumption. Assuming tax year 13/14, if one company has say a CAP between January 1 2013 - January 2014 and another from March 2013 - March 2014, are the coterminous periods therefore from March to January? I am asking because March is outside FY 13/14, but do we still include it as part of the current tax year? This is the same for capital allowances; if an account is from January 2013 - January 2014, we still include January - March 2013 as part of the 2013/14 tax year? Regards, Yazan

TTTax Tutor11y ago#1

Before you study groups you need to understand the basics of corporation tax which I rather fear from your question that you do not. You refer to the tax year 13/14 - tax years are used in personal tax NOT corporate tax! Have you worked through the OT course notes on corporate tax?

YYazan11y ago#2

Sorry, i meant FY 13/14. Ah i see. So for sole traders and partnerships, if the accounting period is from January 13 - January 14, then any capital allowances within that period relate to tax year 13/14 For a company, with the same outline, there will have to be two capital allowance computations. One for January - March and one from March 13 - January 14, yes? Therefore, for coterminous periods of account, if an account straddles two different periods, the group relief is therefore restricted to that fiscal year, yes? e.g., January 13 - March 13, group relief restricted to 3 months, March 13 - January 14, group relief restricted to nine months. Can you confirm if I am correct or if i am missing something else? Regards, Yazan