SAM121543 - Date of cessation of a business shown on the return - Action 2
Where the date of cessation of a business is shown on the return at box 7 on the Self-employment (full) page SEF 1 or box 6 on the Self-employment (short) page SES 1 (box 3.8 for earlier years) and the business commenced, or is deemed to have commenced, before 6 April 1994 and ceased
- In 1996/97, an Inspector should consider the implications of Section 63 ICTA 1988 for the years 1994-95 and 1995-96
- In 1997/98 or 1998/99, an Inspector should consider the implications of paragraph 3, Schedule 20 FA 1994 for the years 1995/96 and 1996/97 and transitional overlap relief or overlap relief, as appropriate
- In 1999-00 and later years, an Inspector should consider the implications of transitional overlap relief or overlap relief only
Where the business clearly commenced after 5 April 1994 and has now ceased, all years should be reviewed for the implications of overlap relief.
There is a potential loss of tax if this review is not made.
In all cases
- Refer the papers to a technical Inspector to review for cessation and transitional overlap or overlap relief adjustments - then, on receipt of the Inspector’s instructions
- See subject ‘Returns Review: Ceased Date Set’ (SAM125010) for the
actions to take