Section A

Titanium Forge Ltd, a heavy manufacturing company, prepared its financial accounts for the 14-month period from 1 January 2023 to 28 February 2024.

How will this period of account be divided into accounting periods for Corporation Tax purposes?

For Corporation Tax, an accounting period cannot exceed 12 months. When a company prepares accounts for a period longer than 12 months (a long period of account), it must be split into two accounting periods. The first accounting period is for the first 12 months (1 Jan 2023 to 31 Dec 2023), and the second accounting period covers the remainder of the period (1 Jan 2024 to 28 Feb 2024).