Self Employed full 51 - Overlap relief

When basis periods overlap (for example in the first 2 years of business or following a change in accounting date) you should keep a record of both the overlap profit and the overlap period. The overlap profit is carried forward each year until you are able to claim overlap relief.

Overlap relief used this year

You may be entitled to overlap relief if you:

• sold or closed down your business, and your basis period this year does not begin on 6 April
• changed your accounting date resulting in a change of basis period, and your basis period this year is more than 12 months long

For help on working out the overlap follow the link Help Sheet 222 - How to calculate your profits.