BIM81230 | Transitional rules: transitional rules for 2023-24 - introduction

For trades commencing before 2023-24, for the tax year 2023-24 only, the transitional rules set out below will apply.

For trades commencing in 2023-24, for the tax year 2023-24, the rules in BIM81240 will apply.

From the tax year 2024-25 and onwards, the new “tax year basis” rules will apply. See BIM81201 for these rules.

Schedule 1 FA 2022

For 2023-24 special basis period rules will apply. This means that the normal basis period will be modified so that the basis period begins immediately after the end of the 2022-23 basis period and ends with 5 April 2024. Additionally, the transitional rules will apply.

The rules only apply to trades that do not cease in 2023-24. Trades that cease in 2023-24 will use the basis period rules as normal. See BIM81001 to BIM81095 for the basis period rules.