Accounting Period 2
Definition
A period in respect of which a corporation tax assessment is raised. It cannot be more than 12 months in length. An accounting period starts when a company begins to trade or immediately after a previous accounting period ends. An accounting period ends at the earliest of:
• 12 months after the start date,
• at the end of the company’s period of account,
• the start of a winding-up,
• on ceasing to be UK resident.
Example
Example 1:
A newly incorporated Lagos fintech company begins trading in March 2024, its first accounting period for tax purposes runs from that date until it files its first annual accounts, after which FIRS raises its corporation tax assessment.
Example 2:
A UK-based subsidiary of an American firm triggers the end of its accounting period the moment it ceases to be a UK tax resident, immediately requiring a final corporation tax assessment for that shortened period before it fully exits UK jurisdiction.