Corporation Tax

Question 1

How do you treat a long period of account?

Answer 1

Split the tax adjusted profits (before CA’s) 12 months and the remaining months, then do as usual but two calculations

Question 2

What basis is the NTLR assessed on?

Answer 2

Accruals basis

Question 3

What date is the QCD (qualifying chargeable donation) based on?

Answer 3

Date of donation

Question 4

What date did the new corporation tax rates change?

Answer 4

1.04.2023

Question 5

What is the CTAX rate before 01.04.2023

Answer 5

TTP * 19%

Question 6

What are the CTAX rates after 01/04/2023

Answer 6

Main rate 25%
Small rate - 19%
Marginal rate - 25% & formula deduction

Question 7

Augmented profits calculation?

Answer 7

TTP + Dividends from non associated companies

Question 8

What are the CTAX limits after 01/04/2023

Answer 8

Small rate - < £50,000
Main rate - > £250,000
Marginal rate - Between £50k and £250k

Question 9

Marginal relief calculation?

Answer 9

(Upper limit - Aug profits) x (TTP/AP) x 3/200

Question 10

What makes the CTAX limits change?

Answer 10

The number of associated companies and the accounting period length

Question 11

How do you calculate CTAX charge if your Accounting period straddles 1.4.23?

Answer 11

Split TTP and:
Before 01.04.2023 - * TTP by 19%
After 01.04.2023 - Typical method