1.4 Proforma Corporation Tax Computation

Question 1

Describe proforma for the Corporation Tax computation line by line? (Write it down)

Answer 1

See image

Question 2

Proforma for the Corporation Tax Computation illustration

Answer 2

Not available

Question 3

How are the income and gains split between 2 APs when calculating the TTP? x6

Answer 3

The income and gains is split between the 2 AP’s as follows:

Adjusted Trading Profit: - time apportioned.

Capital Allowances: - Two comps required, one for each AP:

• on plant and machinery - Scale down WDA by n/12 in short APs. Time apportion AIA limit by n/12. Do not time apportion FYA.
• on structures and buildings allowance (SBAs) - Scale down SBA by n/12 in short AP

UK Property Business Income - Accruals basis. (see question 12.1)

Non-trading profits (LR) - Accruals basis. (SEE: PAGE 65 QUESTION 12.1)

Chargeable Gains - Date realised (i.e. date of disposal).

Qualifying Charitable Donations - Date paid.

Question 4

What does the accruals basis mean? re: income and expenses

Answer 4

It means we take income receivable rather than income received and deduct expenses payable rather than expenses actually paid