Chapter 2 Computation of CT

Question 1

2.1 financial year 2020

Answer 1

Companies pay corporation tax for an accounting period on their taxable total profits. Corporation tax is based on rates during the financial year. A financial year runs from 1 April to 31 March. Where the accounting period straddles 1 April, part of the TTP are charged at the earlier rate financial year rate and the other at the later financial year. This only makes a difference when the CT rate changes.