MTT09540 | Miscellaneous pages: Accounting terms: Accounting periods

For MTT purposes, the accounting period of a group is the period for which the ultimate parent of the group prepares its consolidated financial statements.

This is set out in Section 251 of Finance (No.2) Act 2023.

Default period where no consolidated financial statements are prepared

Where the ultimate parent does not prepare consolidated financial statements, the accounting period of the group runs to the calendar year by default.

Ultimate parent begins to prepare consolidated financial statements

Where the ultimate parent begins to prepare consolidated financial statements during the calendar year, the default period is to end immediately before the first date of the period for which it does prepare consolidated financial statements.

Example

Company A is the ultimate parent of a group. It does not prepare consolidated financial statements, but begins to on 1 July 2024.

The default period will commence on 1 January 2024 and will end on 30 June 2024.

Ultimate parent ceases to prepare consolidated financial statements

Where the ultimate parent ceases to prepare consolidated financial statements, a default period will begin on the day after the last day of the last period for which it prepared consolidated financial statements.

Example

Company B is the ultimate parent of a group. It ceases to prepare consolidated financial statements on 30 September 2024.

A default period will commence on 1 October 2024 and ends on 31 December 2024. A new default period will begin on 1 January 2025 and will run to the calendar year.