Corp Tax - Chapter 1 Flashcards
For a company to be Resident in the UK it must be:
Incorp in the UK
Centrally managed and controlled in the UK
Non resident companies charged CT from disposals of interest in land and buildings from…
6 April 2019
Accounting period begins the earliest of…
i. the commencement of trading by the company;
ii. the acquisition of a source of income;
iii. the company becoming resident in the United Kingdom;
iv. immediately after the end of the previous AP.
An AP ends on the earliest of:
i. the cessation or commencement of trading;
ii. the company becoming dormant, ie having no sources of income;
iii. the end of a company’s period of account;
iv. 12 months after the AP began;
v. the company beginning or ceasing to be resident in the United Kingdom
Are disallowed expenditure adjusted by private expenditure?
No, director or employee are taxed on expenditure as income.
NT loan is added back how is relief claimed?
Relief is given for this interest expense as a nontrading debit in arriving at the figure
Capital Allowances differences to ST and p’ship
- Never more than 12m
- Private adjustments do not apply
- Expenditure on new P+M b/w 1 APRIL 21 - 31 March 2023 = 130% / 50%
Corp Tax payable on what? - Net or Gross chargeable gains?
Net Chargeable gains
Chargeable Gains are entitled to indexation if bought before…
1 Jan 2018
QCDs consist of:
- cash donations to charity (these are always paid gross by a company);
- gifts of shares quoted on a recognised stock exchange (including AIM) to
charity; and CTA 2010, s.204 - gifts of UK land and buildings to charity
Common control of companies:
a. the companies are controlled by the same person; and
b. the companies are ‘related’ to one another.
related companies are
a. their businesses are carried on from the same premises; or
b. more than 50% of the turnover of each of the companies is derived from the
same economic activities
Post Cessation receipts
The company can elect for receipts within the first six years after cessation to be
related back to the date of cessation. CTA 2009, s.198
The election must be made within two years of the end of the accounting period
of the receipt. This could permit receipts to be sheltered by otherwise unused
trading losses that had accrued.
Calculation for super deduction
100 + 30 x N / AP
SR 50% deduction does it change after 31/03/23
No remains at 50%
