Income Tax: basis period reform
This measure intends to reform basis periods for Income Tax for the self-employed, it also launches a consultation on how to implement reform.
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Linked documents
- Policy Paper Income Tax: basis period reform
▤ Verbatim text from source document
The proposal changes the basis period rules from a ‘current year basis’ to a ‘tax year basis’. The transition would take place from 2022 to 2023. The changes would come into effect from 2023 to 2024.
A business’s profit or loss for a tax year would be the profit or loss that occurs in the actual tax year itself, regardless of its accounting date.
Read the ‘Basis period reform’ consultation.