E6.445 Double tax relief—income tax—special rules for years of commencement and cessation (to 5 April 2023)
The rules described in this article do not apply from the 2024/25 tax year onwards. Special transition rules apply for the tax year 2023/24. These changes are a result of basis period reform introduced by FA 2022, which brings in a tax year basis of assessment. For details on basis periods see B8.101A and for the transition year B8.101B, FA 2022, sch 11.
Overlap relief and basis period reform
Overlap profits arose under the pre–6 April 2023 rules on commencement of trade or change of accounting date, see below and B8.102-B8.107. Overlap relief is a deduction from profits, usually arising on cessation of trade. Under basis period reform, the taxation of trading profits moves from a current year basis to a tax year basis. As part of this move, all overlap relief is extinguished. The tax year 2023/2024 is the last year for which overlap relief
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 16:52