ESM8375 - Particular issues: partnership basis periods - transitional rules
Paragraph 23 Schedule 12 Finance Act 2000
A partnership (or, if the intermediary is an individual, that individual) can choose to have its taxable profits calculated as if it had ceased and recommenced trading on 6 April 2000. It may be beneficial for it to do this in order to avoid a substantially increased liability for the first tax year in which the new rules apply. The tax and secondary NICs on the deemed payment would have been due on 5 April 2001, but relief against the profits of the partnership might not be given until the following tax year, depending on the partnership바카라 사이트™s accounting date.
The election for the deemed cessation must be made in the 2000/2001 Partnership Return (or if the intermediary is an individual in the individual바카라 사이트™s 2000/2001 Return). This has to be submitted within the normal time limit.
Notwithstanding any deemed cessation, a partner바카라 사이트™s share of the losses from the pre 6 April 2000 business may be carried forward against his/her share of the subsequent profits of the post 6 April 2000 business. The same position applies where the intermediary is an individual.