Corp Tax - Chapter 11

Question 1

Related parties: Person to company

Answer 1

• A is a company and controls or holds a major interest in B;
• A is a company and B controls or holds a major interest in A;
• A is a company and A and B are under the control of the same person;
• B is a close company and A is a participator or the associate of a participator in B;
• B is a close company and A is a participator in another company that has control or holds a major interest in B.

Question 2

Royalties Payable to Related Parties - tax basis

Answer 2

Accruals Basis

If not paid within 12m of end of AP, not deductible until paid.

Question 3

Goodwill on acquisition - CT Relief?

Answer 3

No corporation tax relief is usually available for the amortisation or impairment of goodwill following an incorporation.
A possible exception is if the incorporation is on or after 1 April 2019, when there may be limited tax relief in very specific circumstances.

Question 4

Qualifying intellectual property includes:

Answer 4

• patents;
• registered designs; and
• copyright or design rights.