Make use of any overlap relief before the rules change
For any partnerships and sole traders, the overlap relief was originally created to help any business who’s accounts year end was different from either 31 March or 5 April, helping to make sure that profits were not taxed twice.
Historically any overlap relief could be carried forward, however any remaining relief now needs to be claimed on the 2023/24 tax return as from 2024/25 profits will be moved from being assessed on a basis period to being aligned with the tax year.
With this in mind HMRC have launched a new online tool to work out any possible overlap relief that can be claimed on the 2023/24 tax return.
If you’d like any other information, or assistance in working out any possible over relief claim, please get in contact with us.