B · Glossary
Basis period
The accounting period that profits are taxed in for sole traders and partnerships.
The basis period is the period of trading whose profits are taxed in a given year. Since the 2023/24 reform, all sole traders and partnerships are aligned with the tax year (6 April to 5 April), removing the old "current year basis" complexity.
Transitional rules applied for 2023/24 — overlap relief was used up and many businesses had to declare extra profits in that year.
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