Corporation Tax - Capital allowances & Groups Flashcards
What is the time period where the FYA super deduction is relevant?
Before 01.04.2023
What is the % for a FYA super deduction?
Main pool - 130%
Special pool - 50%
Which should you allocate first, AIA or FYA Super deduction?
AIA first
FYA Super deduction second
How should you allocate the FYA super deduction if the period straddles 01.04.23?
Pro-rate 30% for no months pre 1 Apr 2023 and add to 100%.
What are the details of the FYA post 01.04.2023
- Only applies to Main Pool
P&M. - Must be new
- Never cars
- No limit
What is the downside of the FYA post 01.04.2023
On disposal there is a 100% balancing charge at the lower of proceeds & cost
When is tax due for a company with Augmented profits of less than £1.5m?
9 months and 1 day after end of accounting period
What are the due date brackets?
£20,000,000
and
£1,500,000
What % ownership to be associated?
51%
Implications of being in a company group?
AIA Shared
CT Rate limits affected
CT Due date affected
What % ownership to be in a loss group?
Direct interest - 75%
Indirect interest - 75%
What can you do if you are in a loss group
Share trade losses
What % ownership to be in a gains group?
Direct interest: 75%
Indirect interest: 50%
Can a company be in multiple capital gains groups at one time?
No
Can a company be in multiple loss groups at one time?
Yes
Implications of being in a gains group?
- Share CY capital gains and
losses - Intra-group transactions at
no gain no loss
Can overseas companies share their losses to UK Companies
No, they can be part of the group but not share their losses.
If an asset gets 50% FYA, what doesn’t it get?
It doesn’t get the 6% CA until the following year.
For a Structures and buildings allowance question, what should you do?
Just look at Hardmans, it has all the info
