TaxSimba — Basis Period Transition Profits: What Still Goes on a 2025/26 Return?
Preparation worksheet

Optional offline planning aid, not a tax return or filing confirmation.
Keep completed notes securely; never include passwords or one-time codes.

WORK THROUGH THIS EXAMPLE
Recover the original transition profit, amounts taxed in each year and any acceleration elections. Compare the remaining balance with the prior return before preparing the next allocation. A new accountant cannot reconstruct that history from current-year bank deposits alone.

DECISION TO RESOLVE
Does the schedule explain the original amount, amounts already taxed and balance remaining?

YOUR POSITION
Relevant year and source: ____________________
Evidence supporting your answer: ____________________
Missing item and who will obtain it: ____________________
Deadline or next review date: ____________________

1. Locate the 2023/24 transition computation.
Notes: ______________________________

2. Collect overlap-relief evidence.
Notes: ______________________________

3. List transition amounts already taxed.
Notes: ______________________________

4. Retain elections and subsequent returns.
Notes: ______________________________

5. Explain cessation or major business changes.
Notes: ______________________________

Actions agreed and responsible person:
____________________________________

Guide: https://taxsimba.co.uk/blogs/basis-period-transition-profit-2025-26
Check the current guide and official sources before relying on a deadline or process.

ADDITIONAL CHECK
 Illustration: £25,000 transition profit gives £5,000 in each of 2023/24, 2024/25, 2025/26 and 2026/27 under the ordinary 20% approach, leaving £5,000 for 2027/28. This assumes no acceleration election or earlier cessation.  An election to tax more earlier changes the remaining schedule. Permanent cessation before the fifth year brings the remaining balance into the cessation year under HMRC’s rule. Reconcile the original amount, annual allocations and balance before adding anything to current trading profit. 
Source: https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim81310