Computation of Corporation Tax Flashcards
Accounting Periods
An Accounting Period Begins on the Earliest of:
- The Commencement of Trade;
- The Acquisition of a Source of Income; or
- Immediately After the Previous Accounting Period.
Accounting Periods
An Accounting Period Ends on the Earliest of:
- The Commencement of Trade;
- The Company Becoming Dormant, i.e., Having No Sources of Income;
- The End of the Period of Account; or
- 12 Months After it Began.
Trade Profit
What are the Main Differences for Companies When Calculating Taxable Trade Profits?
- The Accruals Basis is Mandatory;
- No Private Use Adjustments are Required; and
- First Year Allowances are Available on New Plant and Machinery.
Computation of Corporation Tax
How are Financial Years Denoted?
The Year in Which it Begins.
FY 2024 Runs From 1 April 2024 to 31 March 2025
Computation of Corporation Tax
What are ‘Augmented Profits’?
How a Corporation Tax Rate is Determined and When it is Payable.
The TTP is Taxed.
Computation of Corporation Tax
Augmented Profits are Calculated as:
Taxable Total Profits Plus Dividends Received.
Ignore Dividends Received From 51% Subsidiaries.
Computation of Corporation Tax
The Rates of Corporation Tax are:
- The Main Rate at 25%; and
- A Standard Small Profits Rate at 19%.
From FY 2023
Computation of Corporation Tax
What is Required for an Accounting Periods Longer Than 12 Months?
2 Separate Corporation Tax Computations.
Computation of Corporation Tax
When Must Non-Large Companies Settle Their Corporation Tax Liablity?
9 Months and 1 Day After Accounting Period End.
Electronically
