BTC - Basis periods question, can anyone help?

System

I have the following question:
Mr M ceased trading on 31 December 2006 with overlap profits b/f of £9,000.
Profits for last few periods:
Year ended 30/4/2004 £36,000
Year ended 30/4/2005 £48,000
Year ended 30/4/2006 £16,000
8 months ended 31/12/06 £4,000

Task: Calculate taxable profits for last 3 years of trade.

Can anyone please help and explain what the last 3 years of trade and basis periods will be?
I keep looking at it and think that the last 8 months and the y/e 30/4/06 both end in 2006/07?

I'm so confused.

System

BTC - Basis periods question, can anyone help?

intermediate struggler wrote:

I have the following question:
Mr M ceased trading on 31 December 2006 with overlap profits b/f of £9,000.
Profits for last few periods:
Year ended 30/4/2004 £36,000
Year ended 30/4/2005 £48,000
Year ended 30/4/2006 £16,000
8 months ended 31/12/06 £4,000

Task: Calculate taxable profits for last 3 years of trade.

Can anyone please help and explain what the last 3 years of trade and basis periods will be?
I keep looking at it and think that the last 8 months and the y/e 30/4/06 both end in 2006/07?

I'm so confused.

Hi IM

Taxable profits would be as follows.

2004/05
36,000

2005/06
48,000

2006/07
16,000
4,000
(9,000)
11,000

I hope that makes you see things clearer.

Regards

Dean

System

Re:BTC - Basis periods question, can anyone help?

thanks for your reply. so this means you do actually have 20 months in one tax year?

System

Re:BTC - Basis periods question, can anyone help?

Yes that's right, 30th April is the worst year end you can have for overlap profits but the best for cashflow!

At least you have all the overlap profits to relieve.

Annette