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ACCA Applied Skills · Taxation (UK) · The scope of corporation tax

A company which has been trading for several years changes its accounting date and prepares one set of accounts for the 15 months to 31 March 2026. Which statement about its chargeable accounting periods is correct?

There are two chargeable accounting periods, the first 12 months and then the remaining 3 months. A chargeable accounting period cannot exceed 12 months, so the 15-month period of account is split and profits are time apportioned.

  1. AThere are two chargeable accounting periods: the first 12 months and the final 3 monthsCorrect
  2. BThere is one chargeable accounting period of 15 months
  3. CThere are two chargeable accounting periods of 7.5 months each
  4. DThere is one chargeable accounting period of 12 months and the extra 3 months are ignored

Explanation

A chargeable accounting period cannot be longer than 12 months. A 15-month period of account is therefore split into a 12-month period followed by a 3-month period, and profits are time apportioned between them. Equal halves and ignoring the excess are both incorrect.

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