Chapter 9: Companies - TTP

Question 1

Do companies include dividends recieved or paid within the TTP?

Answer 1

NO

Question 2

3 Rules Trading profits

Private use?
length of chargeable accounting period?
super deduction?

Answer 2

No private use of assets

Max length of chargeable accounting period is 12 months

Super deduction is available

Question 3

How to work out interest income?

Answer 3

Non-trade interest income - non-trade interest expenses

=

Interest income

Question 4

Property income - accruals or cash basis

Answer 4

Accruals

Question 5

Gains - accruals or cash? what tax do companies pay?

Answer 5

Pay corp tax

Actual Basis - when did we receive the gain?

Question 6

Qualifying charitable donation (QCD)

deduct or add to companies taxable income?

Accruals or actual?

Unutilised donation

Answer 6

Deduct from companies taxable income - pay less corp tax

Actual basis

Unutilised donation cannot be transferred to a different period

must be shown seperately on the pro forma!

Question 7

Long accounting period

Answer 7

two tax comp

one for first 12 months, one for rest

Question 8

Trading profit
Gains
Interest
Property Income
QCD

time apportion?

Answer 8

Trading profits - Time apportion (seperate capital allowances)

Gains - Allocate gains to when they happened - ACTUAL

Interest - Accruals

Property Income - Accruals

QCD - Actual basis