ACCA F6 四川大学工商管理学院 课件Chapter 9课件.pptVIP

Chapter 9: Assessable trading income 1 Recognise the basis of assessment (Basis period) 2 Commencement and cessation 3 Change of accounting date 1. Recognise the basis of assessment Tax year: from 6 April to the following 5 April But most businesses do not have periods of account ending 5 April. Therefore, basis period arises - link period of account to tax year. - the profits for a basis period are taxed in the corresponding tax year. - If a basis period is not identical to a period of account, the profits of periods of account are time-apportioned. The general rule is that the basis period is the year of account ending in the tax year. But this rule does not apply in the opening or closing years of a business. 2 commencement and cessation Opening years rules (first year, second year, third year) Current year basis of assessment Final year rules The first tax year The first tax year is the year during which the trade commences. From the date trade starts to the next 5 April (or to the date of cessation if the trade does not last until the end of the tax year). The second tax year If the accounting date falling in the second tax year is at least 12 months after the start of trading, the basis period is the 12 months to that accounting date. (example 2.3 ) If the accounting date falling in the second tax year is less than 12 months after the start of trading, the basis period is the first 12 months of trading. (example 2.4 ) If there is no accounting date falling in the second tax year, the basis period for the second tax year is the tax year itself (from 6 April to 5 April). (example 2.5 ) The third tax year 12 months ending with the accounting date in the third tax year example 2.7 example 2.8 Later tax years —— general rule (CYB) For later tax years, except the year in which the trade ceases, current year basis of assessment (CYB) applies: the basis period is the period of account ending in the tax year. The final yea