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Nazim and Laura have been in partnership for many years, preparing accounts to 31 October
each year and sharing profits equally.
On 1 June 2020 Fabiola joined the partnership. The agreed profit sharing ratio was 2:2:1 to
Nazim, Laura and Fabiola respectively.
The adjusted trading profits for the accounting years ended 31 October 2020 and 2021 were
£240,000 and £300,000 respectively.Dear tutor,
What will be the assessable trading income for Fatima in the second tax year ie 2021-22?
They have given £60000 (Basis of assessment- ye 31 october 2021).but i dont get it why
Since 31 october 2020 doesnt fall in second tax year shouldnt the basis of assessment be 06/04/21 to 05/04/22I guess there’s some printing error..is it?
Pls help
Thanks.
Have you worked through the relevant lectures and study notes that deal with this issue?
I fear the errors are in what you have written above – not in whatever text you are using for your study!
Firstly I presume that Fabiola / Fatima are the same person and secondly and most importantly it is not the year ended 31 October 2020 that is being assessed – it is the year ended 31 October 2021 which does end in the 2021/22 that is being assessed!
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