Partnership Full/Short 05 - Overlap profits and overlap relief
If the partnership's accounting date is a date other than 5 April, overlaps in your basis periods may occur:
- in the first 3 years after you become a partner
- in a year in which there is a change in the partnership's accounting date
Since you are taxed on your share of the partnership profits for a particular basis period, overlaps in your basis periods would mean that you may be taxed more than once on the same profits. To avoid this, you may be able to claim overlap relief for the profit (the overlap profit) in any overlap period.
Overlap relief may be due for the tax year 6 April 2020 to 5 April 2021 if:
- you ceased to be a partner in the tax year 6 April 2020 to 5 April 2021
- the partnership's business ceased in the tax year 6 April 2020 to 5 April 2021
- the partnership changed its accounting date in the tax year 6 April 2020 to 5 April 2021 and your basis period, is more than 12 months
Help Sheet - 222 How to calculate your taxable profits tells you how to work out overlap profits and how to claim overlap relief.
Please enter the amount of any overlap relief used in the tax year 6 April 2020 to 5 April 2021. Enter in the 'overlap profit carried forward' box the amount of any unused overlap profit carried forward to the tax year 6 April 2021 to 5 April 2022.
