As had been anticipated, HMRC has now launched its new online form which taxpayers affected by the move to the tax year basis can use to request details of overlap profits held by HMRC. Overlap relief can be used to set off extra profits brought into account during the 2023/24 transitional year.
Where a business’s year end is not the same as the tax year end, or close to it, the basis period for 2023/24 will be longer than 12 months and there could be an additional tax charge if the amount of any additional profits arising from the transition is greater than the overlap profit deduction. The transitional rules allow a spreading of any additional profits over five years starting with 2023/24.
As had been anticipated, HMRC has now launched its new online form which taxpayers affected by the move to the tax year basis can use to request details of overlap profits held by HMRC. Overlap relief can be used to set off extra profits brought into account during the 2023/24 transitional year.
Where a business’s year end is not the same as the tax year end, or close to it, the basis period for 2023/24 will be longer than 12 months and there could be an additional tax charge if the amount of any additional profits arising from the transition is greater than the overlap profit deduction. The transitional rules allow a spreading of any additional profits over five years starting with 2023/24.
