corporation tax Flashcards
1
Q
how much of R&D expenditure can small/medium sized companies deduct?
A
Pre 01/04/2023 - 130%
After 01/04/2023 - 86%
2
Q
How much is the RDEC for large companies?
A
RDEC - research & development expenditure credit
Pre 01/04/2023 - 13%
Post 01/04/2023 - 20%
3
Q
When is staff expenditure qualified for R&D?
A
- Directly engaged on R&D
- Training, maintenance, secretarial or payroll directly required for R&D
4
Q
Are subcontracted workers qualified for R&D?
A
Yes but only 65%
5
Q
What capital allowances are available for R&D capital expenditure?
A
- 100% FYA
- Pre 01/04/2023, 130% super deduction for P&M but still 100% for buildings
6
Q
What is the additional deduction available for SME?
A
- Deductions cannot have already been made
- Additional deduction is 130%/86% depending on tax year
7
Q
substantional shareholding exemption
A
- sale of shares are tax exempt if:
- they are in a trading company
- are more than 10%
- company was entitled to at least 10% of the distributable profits for a continuous period of 12 months during the 6 months prior to disposal
8
Q
examples of trading loan relationship
A
- an allowable trading expense
- bank overdraft
- debentures
- loans to buy P&M
9
Q
examples of non trading loan relationship
A
- purchase/improve a let property
- a loan to acquire shares in another company
- bank interest receivable
- repayment of overpaid CT
- if total NTLR is a debit/positive - its not taxable
10
Q
how is indexation allowance calculated?
A
indexation factor * cost
