Corporate Chargeable Gains Flashcards
What are the main exemptions for a company?
Motor cars
Items of tangible movable property (chattels) worth £600 0 or less
Chattels with a predictable useful life of up to 50 years (wasting chattels) unless used in business and eligible for capital allowances
Gilt edged securities and qualifying corporate bonds which are dealt with by the loan relationship regime
What is a tax year for corporations
1st April - 31 March
When is a corporations due date of payment?
Generally payable by means of single payment 9 months and one day after the end of the period.
*Certain large companies are required to pay this by instalments.
When is payment by instalment required?
For large companies - defined as more than 1.5million augmented profits for the period - these are taxable profits plus dividends received.
Not required if:
Annual profits do not exceed 10mil and was not classified as a large company in the previous year
Taxable profits are less than 10,000
Where are corporation taxes payable in instalments?
First instalment due 6 months and 14 days from the start of the accounting period. The remaining three instalments fall at quarterly intervals thereafter.
Periods less than 12 months then the last instalment is due no later than 3 months 14 days after the end of the period.
Define very large company by instalment payments
A company with augmented profits exceeding £20m per annum.
Payment is move forward 4 months.
How to corporations account for tax deducted at source / what are these transactions?
Patent royalties / loan interest paid to individuals.
Must account for this to hmrc for all tax deducted at source
What is the failure to notify penalty?
If a company has not filed a tax return and fails to notify HMRC within 12 months of the end of the accounting period concerned. The penalty is 30-100% of tax due.
What is Inaccurate Tax Returns penalty?
This may be charged if an inaccuracy leads to an understatement of taxes due - penalty of 30-100%
What is failure to keep records penalty?
A company which fails to preserve adequate records is liable to a penalty up to £3000 for the accounting period.
