corporation tax

Question 1

who pays corporation tax and what is it charged on?

Answer 1

companies pay ct on both their income profits and capital gains

Question 2

when does the corporation tax year begin and end?

Answer 2

1st april and ends on the 31st march the next year. it is named after the year in which it commenced.

Question 3

explain what is meant by the term close company means

Answer 3

a close company is a company controlled by five or fewer particpants or any number of particpators who are also directors

Question 4

true or false - dividends are a deductible expense for the purpose of corporation tax

Answer 4

false

Question 5

true or false a deposit must be paid to hmrc whenever a close company makes a loan to a shareholder.

Answer 5

false - there are two exceptions to this rule - for money lending businesses and for small loans subject to conditions.