Business tax period longer than 12 months

Mihaela_jg
Mihaela_jg Registered Posts: 1
Hi everyone! I hope you are all well. I am having my Business tax assessment on Saturday but I am still unsure for some things. I read in the book that for period longer than 12 months you have to prepare two separate computations for Corporations tax and Capital allowances. However I have been through some exercises and they have prepared only one computation for period up to 18 months.
Do you know what is the correct thing to do in this situation?

Comments

  • KoopaCooper
    KoopaCooper London, UKMAAT, AATQB Posts: 226
    It's kind of a muddled area...general business income and expenses would be totalled up for the 18 months and then apportioned to the periods (12/18 of the income/expenses for the first computations, 6/18 for the second), capital allowances are also mostly time apportioned (WDA 8 and 18%, AIA - but FYA is never time apportioned and falls into the period in which the asset was purchased), while chargeable gains and capital losses are treated in the period in which they occur.
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