Illustration - long period of account

In this lesson

1. 0:00 Long period of account introduction
2. 1:44 Splitting trade profit across periods
3. 2:20 Handling interest receivable accruals
4. 2:53 Capital gains and loss treatment
5. 3:16 Property income allocation by period
6. 3:54 Calculating corporation tax liability
7. 4:51 Payment and return due dates

About this lesson

This video walks you through splitting trade profit, interest income, property income, and chargeable gains across the correct periods, then calculating the corporation tax liability and identifying payment and return deadlines. You'll see how to apply the accruals basis to property income, deal with losses that fall outside the current year, and understand why the TTP must be apportioned between two financial years even when tax rates don't change. This is a core skill for TX (Taxation) students preparing for exam questions on longer accounting periods. The illustration uses a realistic scenario with multiple income streams and capital transactions, showing you the exact steps to split figures proportionately and avoid common mistakes. By the end, you'll understand that a long period of account calculation is simply a standard TTP and corporation tax computation split across two periods—nothing more complex once you identify which items belong where and when.

Duration: 6m