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HMRC internal manual

Business Income Manual

Change of basis of computing taxable profits: contents

This chapter deals with the consequences of changes in the way in which taxable profits of a trade, profession or vocation are computed from one period of account to the next. The effect of such changes for tax purposes depends on whether they occur as a result of a change in the legislation or in our understanding of the legislation, a change of accounting policy, or to correct errors.

A full list of the contents of this chapter is shown below. The guidance is subdivided into sections, the opening page of each section being in bold in the list below. Please click on the page number alongside to go direct to each section.

Introduction and flowchart
  1. BIM34001
    Introduction and flowchart
Historic overview
  1. BIM34005
    Historic overview
HMRC ability to impose a change
  1. BIM34010
    HMRC ability to impose a change
Has there been a change of basis?
  1. BIM34015
    Has there been a change of basis?
What are invalid and valid basis?
  1. BIM34020
    What are invalid and valid basis?
From invalid to valid basis
  1. BIM34025
    From invalid to valid basis
  2. BIM34030
    Invalid to valid basis: computational adjustment
  3. BIM34035
    Invalid to valid basis: approach to earlier years
From one valid basis to another valid basis
  1. BIM34040
    From one valid basis to another valid basis
Accounting policy changes
  1. BIM34045
    Accounting policy changes
  2. BIM34050
    Accounting policy changes: has there been a change?
  3. BIM34055
    Accounting policy changes: Section 10 of FRS102
  4. BIM34060
    Accounting policy changes: when are they made?
  5. BIM34065
    Accounting policy changes: how are they reported in accounts?
Changes in tax adjustment
  1. BIM34070
    Changes in tax adjustment
Adjustment income and expenses
  1. BIM34090
    Adjustment income and expenses: contents
  2. BIM34095
    Adjustment income and expenses: charge to tax
  3. BIM34105
    Adjustment income and expenses: expenses already allowed
  4. BIM34110
    Adjustment income and expenses: stock and depreciation
  5. BIM34115
    Adjustment income and expenses: change from realisation basis to mark to market (fair value) accounting
  6. BIM34120
    Adjustment income and expenses: change from realisation basis to mark to market (fair value) accounting: spreading election
  7. BIM34130
    Adjustment income and expenses: calculation of adjustment
  8. BIM34135
    Adjustment income and expenses: meanings