1. Corporation Tax Flashcards
What’s the CT %
19%
Can you tax Corporation tax on dividends?
Taxable profits excluded dividends received from UK and overseas companies
For corporation:
Property income losses can be set against what years?
And if excess loss?
Property income losses can be set against current year total profits
- if excess loss = carry fwd against total profits
What date do you use for the indexation allowance for company
- from date of expense
- to the date of disposal
- or to December 2017 if earlier
For corporations companies:
describe the disposal of shares
1. What’s the share identification rules
- Same day
- FIFO on previous 9 days
- share pool
For corporations companies:
Describe the substantial shareholding exemption when disposing shares
1. % holding
2. Period of ownership
3. Type of company shares being disposed
4. What happens when there’s a gain?
5. What happens when there’s a loss?
- more than 10% holding
- 12 months out of previous 6 years
- The type of company shares being disposed of = trading company
- Gain = exempt fro CT%
- Loss = not allowable deduction
For corporations companies:
Is there any AEA OF £12,300 available?
No AEA for companies
For corporations companies:
Which following relief is available
- roll over relief
- Business asset disposal relief
- gift roll over relief
- private resident rolls over relied
Only relieve available to compare is roll over relief
BUT not available on goodwill for companies
For corporations companies:
How do you split long period of financial accounts
Split long financial account periods in to 2 accounting period
Accounting Period 1 : first 12 months
Accounting period 2: remainder of financial accounting period
For corporations companies:
With long periods of account, how many would you need of the following :
- payment days
- file date
- Two seperate payment dates
- One file date
For corporations companies:
- with long period of accounts
Describe the allocation of TTP for the following :
1. Adjusted trading profit before CAs
2. Capital allowances
- comps, AIA, WDA & FYA
3. Interest / property / other income
4. Chargeable gains
5. Qualifying charitable donations
For purposes of determining payment dates
6. Dividends received
- Adjusted ttp before ca = Time apportion
- Ca= seperate computation
Where AP less than 12 month: time apportion AIA, WDA but not FYA - Other income = time apportion
- Chargeable gains = according to date of disposal
- QCD= date paid
- Dividends received = date received
For corporations companies:
In regards to augmented profits
1. What’s the calculation
2. What’s the profit threshold
3. What happens if profits below the threshold
4. What’s happens if profits above the threshold
5. What dividends do you exclude to calculate augmented profits
6. What do you do with thr when there’s a short accounting period
7. What do you do with the thr if you’re in a 51% group company
- Taxable total profit + dividends received = augmented profits
- Compare augmented profits to profit thr of £1.5m
- If profits below £1.5m= normal due dates apply
- If profits above £1.5m :
- company = large
- & quarterly instalments apply - Exclude dividends from 51% group companies
- If there’s a short accounting period = time apportions the £1.5m thr
- If you’re in a 51% group company = divide the limit by the number of 51% group companies at the end of the previous Accounting period
For corporations companies:
Describe the quarterly instalments
1. Compulsory applicable to what size companies?
2. When is the 1st instalment
3. When is the subsequent instalment
4. What’s year is the CT liability based on
5. When is a large co. Above the thr £1.5m augmented profit not required to use quarterly instalment
- when corporation tax liability is less than ?
- if company was not large in the previous year AND augmented profit is below what amount?
- Large companies
- From the Start of AP, 7months + 14 days
- 3 months after
- Current year
- when CTL less than £10k
- augmented profit less than £10m
For corporations companies:
What’s the dates of the following
1. Corporation tax due date
2. File date
- @ End of the accounting period + 9months & 1day
(Unless large co. Where quarterly instalments are required) - @ end of accounting period + 12 months
For corporations companies:
What’s the calculation for double tax relief
Lower of overseas tax and UK tax suffered