InR Grint v HMRC[2016] UKFTT 537 (3 August 2016) the FTT found that a trader had not changed his basis period.
A trader pays tax on his profits from a trade in relation to ‘basis periods’. Mr Grint had an annual accounting date of 31 July. He decided to change his accounting date to 5 April in order to bring into account in the tax year 2009/10 income earned in the 20 month period from 1 August 2008 to 5 April 2010. This would bring forward his liability thus avoiding the new 50% tax rate on the relevant income. ITTOIA 2005 s 216 permitted him to do so if the conditions set out in s 217 were met. HMRC contended that they were not.
The FTT found that the new accounts were accounts as understood by the accountancy profession; they met...
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InR Grint v HMRC[2016] UKFTT 537 (3 August 2016) the FTT found that a trader had not changed his basis period.
A trader pays tax on his profits from a trade in relation to ‘basis periods’. Mr Grint had an annual accounting date of 31 July. He decided to change his accounting date to 5 April in order to bring into account in the tax year 2009/10 income earned in the 20 month period from 1 August 2008 to 5 April 2010. This would bring forward his liability thus avoiding the new 50% tax rate on the relevant income. ITTOIA 2005 s 216 permitted him to do so if the conditions set out in s 217 were met. HMRC contended that they were not.
The FTT found that the new accounts were accounts as understood by the accountancy profession; they met...
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