seamusm99

Hi: my understanding is that Basis Period Reform increases the likelihood of loss of personal tax relief through tapering, ie if my profits for the year are £100k; then with spreading over 5 years the extra £20k each year will result in loss of personal tax allowance by £10k each year for 5 years. It is hard enough paying tax on 120% of your annual income, without a hidden extra tax burden by loss of personal allowance due to basis period reform. Is this true? And if so, why has it been allowed, unless part of the point of basis period reform was to create a hidden extra tax?