Corporation tax Flashcards
How do you treat long accounting periods for corporation tax?
- tax the first 12 months
- tax the remaining months
What defines a large company and how do they pay their corporation tax?
- a company with augmented profits > £1.5m
- pay in instalments
When should a corporation tax return be submitted?
Within 12 months after the end of the accounting period
How do you calculate augmented profits?
TTP + FII
How to you calculate FII?
FII = dividends * 100/90
List three things you need to know about FII?
- dividends from >= 51% subsidiaries not included as FII
- used to determine method of tax payments, i.e. dates
- time apportion to account period below 12 months
How to calculate trading income?
Net prof per accounts + disallowable expenditure - non-trading income - capital allowances
How to calculate property income?
rental income - rental expenses
How to calculate TTP?
Trading income + property income + NTLR + chargeable gains + misc income - qualifying charitable donation
How to calculate NTLR?
Non-trade investment income - non-trade investment expense
How to calculate indexed chargeable gains?
proceeds - cost - IA
How to calculate IA?
cost * (RPI@disposal - RPI@acq)/RPI@acq
When calculating IA, do use raw cost of goods or incidental?
Incidental, make sure you add on any other purchase expenses
How do we have to approach calculating IA?
Must calculate RPI to 3dp FIRST, then multiply by full incidental cost
When calculating RPI, does decorating count as an expense to increase asset value?
No
