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Enter any overlap profit that has arisen either in the second year (or the third year or, in exceptional circumstances, both second and third years) of trading or when there has been a change of accounting date. The number of days must be entered as well as the amount of profit taxed twice (the overlap profit) even if the overlap profit is required only for a closing year computation.
Do not enter details of transitional overlap arising in y/e 5/4/98 on the 1998 return. IRIS computes this automatically.
The computation automatically utilises all the overlap profit on cessation and the appropriate portion where there is a qualifying change of accounting date.
Do not enter details of any overlap arising in the current year. IRIS will compute this automatically. Use this screen to enter details of any overlap profit brought forward.
The system will automatically calculate and store any overlap profits
that arise for trading income.
From y/e 5/4/97 onwards these will automatically be brought forward year
on year until overlap relief is available.
The amount available can be viewed here. It will be necessary to enter
details where earlier year's computations have not been processed by IRIS
Personal Tax.
The overlap profits for other income must be entered manually so that they may be utilised if possible.
The profit is automatically offset against income in the following sequence:
Untaxed income (box 63 on page FP4 2008 to 2013) & (box 64 on page FP4 2014 onwards).
Any excess is set against UK savings (box 26 on page FP2 2008 to 2013) & (box 28 on page FP4 2014 onwards)...
....and then against foreign savings (box 29 on page FP2 2008 to 2013) & (box 31 on page FP2 2014 onwards)
Any leftover is set against other income by adding the remainder to any amount of trading overlap relief (box 12 on page FP1 2008 to 2013) and (box 13 on page FP1 20 2014 onwards). If the trade now makes a loss (box 19 on page FP2 2008 to 2013 box 21 2014 onwards) the amount of other income overlap must be set against the partners other income for the year (box 20 on page FP2 2008 to 2013 box 22 2014 onwards).
