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The Partnership return does not cater for basis period/overlap relief. The tax return does not provide a box to make the adjustment to apportion the details for the full period.
A worked example has been provided below for further clarification. A partnership incorporated on 21 December 2019 with their accounting period end set to 31 December 2020. The total profit for the period 21 December 2019 to 31 December 2020 is £13,000. The first return which needs to be completed is therefore the 2019/20 tax return. The dates which would be declared are 21 December 2019 to 5 April 2020. The profit then needs to be apportioned, so we take the £13,000 and divide this by the total number of days (376 days) and multiply by the number of days in the period (106 days) which gives you £3,664.89, which is rounded down to the nearest pound (to round in your favour as per HMRC rules). Please see HMRC's Partnership Tax Return Guide for further information. |
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