10 - corporation tax Flashcards
when are the two times an accounting period would start
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
an accounting period ends on the earliest of which 3 dates
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
what happens if a company has a period of accounts exceeding 12 months
two accounting periods, each giving rise to separate corportion tax computations
what is the proforma for calculating CT
trading income
property income
non trading loan relationships
miscellaneous income
chargeable gains
- qualifying donations
= taxable total profits
how to treat interest paid by a company in respect of a trading loan relationship
allowable expense
do you include private use adjustements during capital allowance computations for limited companies?
no
what is the designated enterprise zone?
100% FYA is available for expenditure incurred by a company on new plant and machinery in use in a designated enterprise zone
what is the limit when the 100% FYA can be claimed on expenditure in a designated enterprise zone
8 years
what is the superdeduction
130%
what does the superdeduction apply to
plant and machinery purchases in the main pool
how to treat dividends received from other companies as a company?
ignored in computing taxable profits, exempt
who receives an annual exempt amount
individuals, not companies
what is a loan relationsihp
if a company loans money as a creditor or is loaned money as a debtor
how to treat interest payable in a trading laon relationship
allowable trading expense set against trading income
how to treat interest receivable in a trading loan relationship
trading receipt treated as trading income
how to treat interest payable and interest receivable in a non-trading loan relationship
both end up in the NTLR section of the CT computation
what is the rate for FY 2022
19%
what are augmented profits
taxable total profits + exempt ABGH distributions
what are exempt ABGH distributions
exempt dividends received from UK and overseas companies
what dividends are not included in exempt ABGH distributions
dividends received from companies which are 51% subsidiaries of the receiving company
what is meant by 51% group companies
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
what is a dormant company
one that is not carrying a trade or business
how do 51% group companies affect the payment date for CT?
the profit limit for payment is divided by how many 51% grop companies are related
what is the due date for CT payment
9 months and 1 day after the end of the accouting period
