Policy paper

Income Tax: basis period reform

This measure intends to reform basis periods for Income Tax for the self-employed, it also launches a consultation on how to implement reform.

From:
HM Revenue & Customs
Published
20 July 2021

Documents

Income Tax: basis period reform

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Details

The proposal changes the basis period rules from a 鈥榗urrent year basis鈥� to a 鈥榯ax year basis鈥�. The transition would take place from 2022 to 2023. The changes would come into effect from 2023 to 2024.

A business鈥檚 profit or loss for a tax year would be the profit or loss that occurs in the actual tax year itself, regardless of its accounting date.

Read the 鈥楤asis period reform鈥� consultation.

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Published 20 July 2021

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