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Please confirm if when calculating the tax adjusted trading profit we less Income assessable elsewhere including property income, but then once we have the figure we input this as the trading profit starting point for our income tax computation and then we include the same property income value into NSI?
I have watched lectures but still a little confused.
In the adjustment of trading profit we do indeed exclude any non trading income and then use the relevant basis of assessment to assess that trading profit in the correct tax year – for example the adjusted trading profit for the year ended 30 June 2016 using CYB will be assessed in 2016/17 but the property income and any other income to be assessed in 2016/17 will not be the amounts deducted in the adjustment of profit but will be the amounts to be assessed using the correct basis of assessment for that source of income in that tax year, for example property income will be assessed on the amounts accrued in 2016/17 tax year, interest and dividend income on the amounts received in the 2016/17 tax year which will not be the same figures as included in the accounts for the year ended 30 June 2016.