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Long periods of account |
See Also
Annual payments not otherwise charged | Annual payments not otherwise charged - multiple | Charges - single | Disposals | Fixed assets | Investment companies | Period greater than 18 months
The standard schedules are all available for periods of account of more than 12 months. Where this is the case, the period of account is sub-divided into two or more accounting periods, the first comprising the first 12 months and the second or stub period being made up of the balance.
On starting a computation or building a new year, it is important that the correct start and end of the current period of account are shown. These dates should be the period for which the accounts are made up, and not the tax periods of one year plus a stub period. This is because the software will automatically deal with the apportionment between the two periods, using one file to enter information for both periods.
The software does not normally permit the user to create Periods of account exceeding 18 months, in accordance with company law. However, in exceptional circumstances this may be permitted (please check whether this may apply to you). The software will then calculate the relevant amounts and require data entry and intervention as outlined below. If you create a file for a period of account that exceeds 18 months, you are advised the review the file and calculations thoroughly.
Select from the following headings:
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The D schedules are the same as for accounting periods of one year or less. These do not require analysis by accounting period as trading income before the deduction of capital allowances, is apportioned on a time basis (CTA 2009 s 52).
The C schedules, however, require the following details to be entered by period by the user as capital allowances and balancing charges are calculated separately for each accounting period (CAA 2001 s 247 ):
Fixed assets
On the C schedule, the fixed asset additions should be split between the 12 month and stub period.
Fixed asset disposals
The Disposals schedule will also be divided between the 12 month and stub period.
Non loan relationship interest income
The Annual payments not otherwise charged and Annual payments not otherwise charged- multiple schedules, from which income is taxed on a receipts basis, are divided between the two periods. Any income tax suffered should be separately specified for each period.
Amounts allowable on a paid basis
This would include the Charges on income schedule, which require the amounts paid to be split between the two periods (CTA 2010 s 189). Any income tax deducted should be separately specified for each period.
Capital allowances: The capital allowance B schedules are automatically analysed by accounting period (CAA 2001 s 247). The user can therefore disclaim allowances in either/both periods. Writing down allowances will be reduced where the accounting period is less than a year; first year and initial allowances will be given in full.
'A' schedule
The format of the 'A' schedule for investment companies differs from that for trading companies, in that there is no adjustment to profit. Instead the various types of income (including Trading income) are computed elsewhere, and the taxable amount brought to 'A'.
Allowable expenses
Property expenses
Allowable property expenses are deducted from UK property income, as identified on the various Expense analysis schedules.
Expenses of management
Allowable expenses of management are deducted from total income. If there are any surplus management expenses brought forward from previous periods, these are deducted from the total leaving either profits chargeable to corporation tax or surplus expenses to be carried forward. Relief for capital allowances on plant and machinery or cars is assumed to be entirely expenses of management. Where there is relevant trading income, the user must manually adjust the capital allowances if they are to be set against trading income.
Loss relief
The loss relief schedule for investment companies is similar to that for trading companies except that management expenses are brought and carried forward instead of trading losses. The schedule has additional columns for surplus capital allowances, UK property losses and any trading losses.
The headings for the computation can be changed using File, Properties, Headings as required, e.g. the text may be changed to "Based on the accounts for a 15 month period ended...". See also the File help schedule.