Chapter 11 - 1.2 - Accounting Periods for Corporation Tax

Question 1

What is an accounting period for corporation tax purposes?

Answer 1

Usually the company’s period of account (the period covered by financial statements) but it cannot exceed 12 months

Question 2

When does an accounting period start?

Answer 2

• when the company starts to trade (or receive income chargeable to corporation tax)
  OR
• when the previous accounting period ends

Question 3

When does an accounting period end?

Answer 3

• 12 months after the beginning of the accounting period
  OR
• at the end of the company’s period of account
  OR
• when the company starts or ceases to trade