Long Periods Account Help

The period that a company prepares accounts for (period of account) can be longer than 12 months.

However, the Corporation Tax period (accounting period or AP) cannot exceed 12 months.

Where the period of account does exceed 12 months, it must be split into more than one AP, with a separate set of tax computations and form CT600 for each.

The accounts should be attached for the first AP they cover, then none attached for the other APs covered.

The trading profits need to be apportioned between the APs. This may be done by time-apportionment, which is the most common method. However, a different method should be used if better information is reasonably available. Chargeable gains fall into the AP in which they arise instead of being time-apportioned.

If the company has prepared accounts for a period that is more than 12 months but less than 18 months, it must deliver a tax return within 12 months from the end of that period. If the period of account is more than 18 months, a tax return must be delivered within 30 months from the start of the period.