10 - corporation tax

Question 1

when are the two times an accounting period would start

Answer 1

when the company begins to trade or acquires a source of chargeable income
when the previous accounting period ends and the company is still within the charge to CT

Question 2

an accounting period ends on the earliest of which 3 dates

Answer 2

the end of 12 months from the start of the accounting period
the date the company begins or ceases to trade
the date the period of account ends

Question 3

what happens if a company has a period of accounts exceeding 12 months

Answer 3

two accounting periods, each giving rise to separate corportion tax computations

Question 4

what is the proforma for calculating CT

Answer 4

trading income
property income
non trading loan relationships
miscellaneous income
chargeable gains
- qualifying donations
= taxable total profits

Question 5

how to treat interest paid by a company in respect of a trading loan relationship

Answer 5

allowable expense

Question 6

do you include private use adjustements during capital allowance computations for limited companies?

Answer 6

no

Question 7

what is the designated enterprise zone?

Answer 7

100% FYA is available for expenditure incurred by a company on new plant and machinery in use in a designated enterprise zone

Question 8

what is the limit when the 100% FYA can be claimed on expenditure in a designated enterprise zone

Answer 8

8 years

Question 9

what is the superdeduction

Answer 9

130%

Question 10

what does the superdeduction apply to

Answer 10

plant and machinery purchases in the main pool

Question 11

how to treat dividends received from other companies as a company?

Answer 11

ignored in computing taxable profits, exempt

Question 12

who receives an annual exempt amount

Answer 12

individuals, not companies

Question 13

what is a loan relationsihp

Answer 13

if a company loans money as a creditor or is loaned money as a debtor

Question 14

how to treat interest payable in a trading laon relationship

Answer 14

allowable trading expense set against trading income

Question 15

how to treat interest receivable in a trading loan relationship

Answer 15

trading receipt treated as trading income

Question 16

how to treat interest payable and interest receivable in a non-trading loan relationship

Answer 16

both end up in the NTLR section of the CT computation

Question 17

what is the rate for FY 2022

Answer 17

19%

Question 18

what are augmented profits

Answer 18

taxable total profits + exempt ABGH distributions

Question 19

what are exempt ABGH distributions

Answer 19

exempt dividends received from UK and overseas companies

Question 20

what dividends are not included in exempt ABGH distributions

Answer 20

dividends received from companies which are 51% subsidiaries of the receiving company

Question 21

what is meant by 51% group companies

Answer 21

if more than 50% of a companys ordinary share capital is owned directly or indirectly by another company, these two companies are related 51% group companies

Question 22

what is a dormant company

Answer 22

one that is not carrying a trade or business

Question 23

how do 51% group companies affect the payment date for CT?

Answer 23

the profit limit for payment is divided by how many 51% grop companies are related

Question 24

what is the due date for CT payment

Answer 24

9 months and 1 day after the end of the accouting period

Question 25

what are the figures for a large company

Answer 25

profits greater than 1.5 mil but less than 20 mil

Question 26

what two exemptions could a company have to not be treated as a large company

Answer 26

it has a tax liability of less than 10,000
it was not a large company in the 12 months before and has augmented profits of 10 mil or less

Question 27

how does the payment work for CT of a large company

Answer 27

four equal instalments on the 14th day of the 7th, 10th, 13th and 16th month after the start of a 12 month accountign period

Question 28

what are the figures for a very large company

Answer 28

augmented profits exceeding 20 mil

Question 29

how do the payments work for very large companies

Answer 29

4 equal installments
14th day of months 3, 6, 9 and 12 of the accounting period