BIM73060 - Averaging: creators of literary or artistic works: relevant references in farming averaging guidance
Although the legislation is different, farmers’ averaging and averaging for creators of literary or artistic works are identical in:
- the way they are claimed, and
- the effect on tax due under SA.
The table below shows links to guidance on farmers’ averaging which is also relevant to averaging for creators of literary or artistic works. But if you need the legislative authority for particular guidance you should look in ICTA88/SCH4A.
| BIM73120 | Profits averaged are after capital allowances but before loss relief. |
| BIM73130 | How full averaging works. |
| BIM73135 | Marginal averaging. This is available when the profits for two consecutive years differ by more than 25% but less than 30% of the higher figure. |
| BIM73140 | Effect of successive claims. |
| BIM73145 | How claims affect the tax and NIC for the years concerned. |
| BIM73150 | When averaging has been claimed and the profits for either year change for some other reason then the claim is unscrambled but there is a fresh opportunity to claim. |
| BIM73151 | When averaging has not been claimed and the normal time limit has expired there may be a limited opportunity to claim if the profits returned are increased because of an investigation |
| BIM73160 | Claims to other reliefs may be amended until the averaging claim is determined. |
| BIM73165 | Averaging does not affect the tax due for the earlier year. Claims to postponement of payment of the tax for the earlier year will lead to interest being payable. |
| BIM73170 | Effect on claims such as age allowance and retirement annuity relief which depend on the extent of profits |
