spread additional tax income due to change of basis period

I read somewhere that when MTD for ITSA was to come in on 5/4/2024: if the change of basis period led to higher than normal taxable profits : you could opt to spread the additonal amounts over a 5 year period : is this the case even though 5/4/2026 is the new MTD deadline - with HMRC insisting now that all basis periods are still change by 5/4/2024?

Hi,

You can see guidance here:

BIM86044 - TMIA – Other Considerations: Overlap Relief

This relates to overlap relief due the change in your accounting period to help with the additional charges that may be due.

Thank you.

This in fact was not the question I was asking it's specifically relates to making tax digital changes coming in April 2026 with a change of basis period has created additional taxation, I understood it to be the case that the additional profits can be spread over a five-year period I need confirmation of this please

Hi david leff,

Please note that detailed guidance on the transitional rules for spreading transition profits is provided at BIM81310.
BIM81310 - Transitional rules: spreading transition profits

Thank you.