Transitional profit
For the tax year 2024, HMRC has introduced the basis period reform measure, where individuals may be subject to transition profits. For more information about this measure, go to the HMRC basis period reform policy paper. To help calculate your transition profits, refer to the HMRC Business Income Manual.
| Field | Description |
|---|---|
| Profit/(loss) of the transition part of the basis period |
This is step 2 of the transitional rules. The apportioned profit/(loss) of the next accounting period to 5th April 2024. |
| Total transitional profit |
This is step 5 of the transitional rules. The total transitional profit. |
| Transitional profit taxable | The amount of transitional profit being treated as arising in the tax year. The system automatically calculates this value at 20% of the total transitional profit value entered. This value can be adjusted by the user but must be at least 20% of the total transitional profit. |
| Transitional profit carried forward |
Any total transitional profit not being treated as taxable in the tax year is carried forward and taxed in subsequent tax years. |