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BIM81000 | Computation of liability: contents

From HM Revenue & Customs · Business Income Manual

NOTE: The basis period rules are changing in 2023/24, which may mean that the guidance in these pages may not apply from the tax year 2023/24 (depending on your circumstances. Please see to for guidance on the transitional year in 2023/24 and for 2024/25 onward.

This chapter explains how profits chargeable to Income Tax are computed. Profits are calculated with reference to a period of account which may not correspond with a tax year. There are rules to determine which period or periods will form the basis for the charge to tax for a particular year. The legislation on basis periods is in S196-S220 Income (Trading and Other Income) Act 2005.

Contents23 entries

  1. BIM81001Computation of liability: introduction to basis periods
  2. BIM81010Computation of liability: basis periods - general rules
  3. BIM81015Computation of liability: basis periods - commencement years
  4. BIM81020Computation of liability: basis periods - where first accounting date just before end of tax year
  5. BIM81025Computation of liability: basis periods - year of cessation
  6. BIM81030Computation of liability: basis periods - accounts made up to slightly varying dates
  7. BIM81035Computation of liability: basis periods - change of accounting date
  8. BIM81040Computation of liability: basis periods - change of accounting date in the opening years of trade
  9. BIM81045Computation of liability: basis periods - change of accounting date in year 4 onwards
  10. BIM81050Computation of liability: basis periods - commercial reasons for change of accounting date
  11. BIM81055Computation of liability: basis periods - year after ineffective change of accounting date
  12. BIM81060Computation of liability: basis periods - examples of change of accounting date in year 4 onwards
  13. BIM81065Computation of liability: basis periods - apportioning profits to basis periods
  14. BIM81070Computation of liability: basis periods - apportioning losses to basis periods
  15. BIM81075Computation of liability: overlap relief - introduction
  16. BIM81080Computation of liability: overlap relief - computation
  17. BIM81085Computation of liability: overlap relief - how given
  18. BIM81090Computation of liability: overlap relief - given on change of accounting date
  19. BIM81095Computation of liability: overlap relief - given on cessation
  20. BIM81100Computation of liability: introduction to 'previous year' basis period rules
  21. BIM81105Computation of liability: previous year basis - 1996-1997 transitional rules
  22. BIM81110Computation of liability: previous year basis - transitional overlap relief
  23. BIM81200Tax year basis and transitional rules: contents