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For partnerships taxed under the new rules enter the share of profit for the account period. If there are two or more accounting periods required to calculate the taxable profit for the partner then enter the share of profit for these other periods too. Under old rules the amount for the fiscal year should be entered. The y/e 5/4/97 will be old rules for all trades commencing before 6/4/94. The wording at the top of the screen will show whether the share of profit is for the 'ACCOUNT PERIOD' or the 'BASIS PERIOD'. All the amounts below the line on the screen are for the basis period.
Share of profit for tax purposes (-ve=loss) - the share of profit or loss is the partner's share of the profits for the account period. Do not apportion the profit where the partner is new to the business and his taxable profit will be based on a portion of the profits for the accounting period. IRIS does this automatically. In y/e 5/4/97, for businesses that started trading prior to 6/4/97, the share of profit is for the basis period (not the account period). The correct amount is computed by IRIS Business Tax and transferred to Personal Tax and the figure includes any capital allowances or balancing charges. If there is no income (the partner has a 0% share) enter the letter n for nil.
Capital allowances,
From y/e 5/4/99 onwards the capital allowances may be incorporated in the profit or loss field above. Any amount entered in the capital allowance field will be deducted from the profit or loss.
In y/e 5/4/98, for businesses that commenced trading prior to 6/4/94, the capital allowances must be separated from the overall profit or loss. This is because any transitional overlap profit is computed on the profits before capital allowances.
In y/e 5/4/97, for businesses that commenced trading prior to 6/4/94, there is no data entry field for capital allowances. The profits will have been averaged in Business Tax and the capital allowances deducted before the partner's share of the profit is transferred to Personal Tax.
Enter a balancing charge as a negative number in the capital allowance field.
Enter Amounts for BASIS PERIOD: Adjustment to arrive at profit or loss - IRIS will calculate the adjustment to arrive at profit or loss automatically based on the current year basis rules. In the unlikely event that you need to change the figure calculated, enter an amount here (negative for a reduction) but note that this will not be reflected in the trade computation report as this is based on our understanding of the rules that govern the trade in question. In the transitional year (1997), the transitional averaging will be performed by Business Tax, not by Personal Tax. The share of profit for tax purposes should be the averaged amount. Do not enter an amount in the adjustment field.
Adjustment on the withdrawal of cash basis - the value shown in this grayed out field is the amount that will be used in the current tax year. To view further details of this adjustment click here.
UITF 40 Adjustment - the value shown in this grayed out field is the amount that will be used in the current tax year. To view further details of this adjustment click here.
Adjustment for farmers averaging - tick box to use IRIS figures-click here for more information about farmers averaging or enter own figure.
Loss offset against other income - to make an S380 claim enter the loss to offset against other income in this field, enter the total amount to be offset as a positive number.
Loss offset against capital gains - all or part of a trading loss may be offset against capital gains; this entry will appear on the capital gains pages.
Loss brought forward from last year - IRIS will automatically bring forward any unused loss from earlier years' tax returns provided that a tax computation was run before the data was brought forward (so that the unused amount could be computed). The amount may be adjusted, if necessary.
Loss brought forward from last year and used this year - enter the amount of any loss brought forward from last year that is to be set against the current year's trading profits.
Loss to carry forward - this field shows the CURRENT year loss and not an accumulated total of losses created so far.
Any other amounts received - enter enterprise allowance in the any other business income field.
Share of business premises renovation allowance - enter the partner’s share of the partnership’s BPRA from box 12A of the Partnership Statement.
Delete will delete the information from the account period selected.
