Corporation Tax Flashcards
Who pays corp tax
UK resident companies on worldwide income. Resident companies are incorporated or centrally managed here
Taxable profits meaning
income and gains of a company
What is the proforma for corp tax
Trading income
Property income
Non-trading loan relationships
Chargeable gain
Misc Income
Total
What is the formula for trading income (not tepid)
Net profit + disallowed expenditure – capital allowance – income in accounting not taxable as trading income = Adj trading profit
What is full expensing (ct)
When company claims FYA on new P&M except on cars from 01/04/23
What is loan relationship (ct)
It is a relief given on interest payable to loan to acquire or improve property
How do you treat trading/non-trading loan relationships
if interest is trading- allowable/taxable under trading income
if interest is non-trading- allowable/taxable under NTLR
When is interest receivable classed as trading/non trading
trading: trade is lending money (e.g. banks)
non- trading: anything else (e.g. repayments of corp tax)
When is interest payable classed as trading/non trading
Trading: e.g. payable on overdraft or loan to pay for p&m
Non-trading: loans to buy/let property, buying other companies or overdue tax
How do companies treat charity
Remove from taxable trading profit
