Corporation tax Flashcards
Which companies have to pay CT>
Those registered in the UK or those managed and controlled in the UK - worldwide profits then payable for CT
what is a non-trading loan relationship?
one where you add up interest received on non-trade stuff and taken off interest spent on non-trade stuff. you include overpaid tax interest
how do you work out inflation increase in cost for CT?
rpi at disposal or dec17 - rpi at expenditure / rpi at expenditure x cost - this is the actual INCREASE IN THE COST, not the COST
how do you work out the chargeable gains on an indexed thing?
work out the actual gains (unindexed) then take off the index amount
how many DP should you round the indexation factor to??
THREE DP
what do you do if there is enchancement expenditure that occurs at a different time to the purchase for indexing?
You calculate separate indexings
what is important to know about allowable losses with indexation?
indexation can’t create a loss from a gain, it can only reduce something as far as zero. it can’t make a loss bigger
how much is CT?
19%
how do you work out augmented profits?
you do total taxable profits + exempt ABGH distributions, exempt abgh being dividends receuved from uk and overseas NON-51% group companies
what companies ARE a 51% group company?
companies where one is >50% subsidiary of the other por two are 51% subsidairies of the same company
what are the augmented profits limits for large and very large companies?
1.5m and 20m - must pro-rate
the limits are shared equally between related 51% group companies - i.e. if there are 3 companies all related and one owns both the others, if it were a ‘large’ company, itd have a limit of £500k - the point of this is for CT payment dates
what is the payment pattern for a large company (1.5m - 20m)
4 quarterly installments in months 7,10,13 and 16 of the tax year on 14th of each month
installments are estimated CURRENT YEAR LIABLILITY
doesn\t apply if taxx liability is <10k or company not large in previous 12m AND aug profits 10m or less in this AP
what is the payment pattern for a v large company (>20m)
month 3. 6, 9 12, 14th each month
when are non-large comapnies taxes due
9m and 1d after end of accounting period
is bank interest receivable something that should be included in terading income or not?
no it should not be included in trading income
how do you work out capital allowances for a car?
18% of value - unless its green
what is the point of augmented profits?
it is to see how much money the company makes regardless of taxation, so you can work out tax payment dates, therefore the exempt abgh distributions thing is companies that arent’t related to the company as it appears they are tax exempt??
do you count sales that hasn’t been received cash for yet in your total taxable profits?
yes
how long do you have to SUBMIT your CT return/
1 year from end of accoutnign period
is loan interest used to buy capital assets allowed against trading profits for tax
YES
DO YOU INCLUDE PROFIT ON DISPOASAL OF capital assrts as part of trading income?
no
is directors enmoluments a valid expense on trading profits?
yes
drawings are only for sole traders
after how long of a company starting an accounting period must they notify hmrc they have started?
3 months
how long does a company have to make a claim for overpayment relief?
4 years from the end of the accounting period
