Corporation Tax - Capital allowances & Groups

Question 1

What is the time period where the FYA super deduction is relevant?

Answer 1

Before 01.04.2023

Question 2

What is the % for a FYA super deduction?

Answer 2

Main pool - 130%
Special pool - 50%

Question 3

Which should you allocate first, AIA or FYA Super deduction?

Answer 3

AIA first
FYA Super deduction second

Question 4

How should you allocate the FYA super deduction if the period straddles 01.04.23?

Answer 4

Pro-rate 30% for no months pre 1 Apr 2023 and add to 100%.

Question 5

What are the details of the FYA post 01.04.2023

Answer 5

• Only applies to Main Pool
  P&M.
• Must be new
• Never cars
• No limit

Question 6

What is the downside of the FYA post 01.04.2023

Answer 6

On disposal there is a 100% balancing charge at the lower of proceeds & cost

Question 7

When is tax due for a company with Augmented profits of less than £1.5m?

Answer 7

9 months and 1 day after end of accounting period

Question 8

What are the due date brackets?

Answer 8

£20,000,000
and
£1,500,000

Question 9

What % ownership to be associated?

Answer 9

51%

Question 10

Implications of being in a company group?

Answer 10

AIA Shared
CT Rate limits affected
CT Due date affected

Question 11

What % ownership to be in a loss group?

Answer 11

Direct interest - 75%
Indirect interest - 75%

Question 12

What can you do if you are in a loss group

Answer 12

Share trade losses

Question 13

What % ownership to be in a gains group?

Answer 13

Direct interest: 75%
Indirect interest: 50%

Question 14

Can a company be in multiple capital gains groups at one time?

Answer 14

No

Question 15

Can a company be in multiple loss groups at one time?

Answer 15

Yes

Question 16

Implications of being in a gains group?

Answer 16

• Share CY capital gains and
  losses
• Intra-group transactions at
  no gain no loss

Question 17

Can overseas companies share their losses to UK Companies

Answer 17

No, they can be part of the group but not share their losses.

Question 18

If an asset gets 50% FYA, what doesn’t it get?

Answer 18

It doesn’t get the 6% CA until the following year.

Question 19

For a Structures and buildings allowance question, what should you do?

Answer 19

Just look at Hardmans, it has all the info