Corporation tax Flashcards
Employer pension spreading
See hardmans pg 34
How do you treat a long period of account for corp tax?
- tax the first 12 months
- tax the remainder
When calculating gains, what should I remember?
To always include what is in the capital allowances working
What is the substantial shareholding exemption? How is it applied?
- where a company disposes of a shareholding >=10% that it has held for 12/24 months prior to disposal
- the gain or loss is exempt from the corp tax working
How do you treat a QCD?
Take it off at the end. If it has been ‘accounted for’ in the question, add it back and then take it off at the end to have a net zero effect
What does the tax adjusted trading income include?
All trading income and expenses - not trading losses b/f
Do you apportion for business use?
No
What do you do with elements that are disallowable for the tax adjusted trading income working?
Include them in the total income working afterwards
How do you treat dividends?
They are exempt
How is capital expenditure relating to R&D treated?
Qualifies for 100% FYA
How is revenue relating to R&D treated?
There is an additional 130% relief of the amount
How are services sub-contracted out to a connected party treated relating to R&D?
Additional 130% relief
How are services sub-contracted out to an unconnected party treated relating to R&D?
Additional 130% x 65% relief
How are intangible fixed assets treated for CGT?
- profit/loss on sale is allowable
- patent royalties allowable
- amortisation allowable
What is qualifying revenue expenditure for R and D purposes?
consumable/transformable materials
computer software
power, water, fuel
payments made to a subcontractor for R&D activities (subject to some restrictions).
