Corporation Tax Liability (3) Flashcards
Difference in company’s corporation tax compared to income tax (private)
No private element of expenses added back as there is no proprietor
Difference in company’s corporation tax compared to income tax (drawings)
Drawings are not relevant for companies as there is no proprietor
Difference in company’s corporation tax compared to income tax (family salaries)
Family salaries are not relevant for companies
Difference in company’s corporation tax compared to income tax (legal fees share capital)
Are disallowed
Difference in company’s corporation tax compared to income tax (legal fees patents)
Legal fees with regard to registering patents and trademarks are allowable
Difference in company’s corporation tax compared to income tax (interest payable non-trading)
Interest payable on non-trading loans are disallowed.
Expense is allowed instead against interest income
Difference in company’s corporation tax compared to income tax (interest payable HMRC)
Treated as non-trading but also tax relievable against interest income
When do capital allowance rules apply for corporations?
When there are no private use assets. Only one AIA is allowable
Proceeds in capital allowance for plant and machinery sold after 31 March 2023?
Brought in as a balancing charge
Expenditure which fell into special rate pool and is subsequently sold after 31 March 2023?
50% of sale proceeds are deducted from special rate pool
Other 50% brought in as a balancing charge
Property income basis in corporation tax?
Always calculated under an accruals basis
Interest payable on a rental property in corporatrion tax?
Allowable against interest income but not property income
Rent a room relief for companies?
Not available
If comapny makes a property business loss on its properties?
Must offset in full against total profits before deduction of QCD of current period
Qualifyijng charitable donation payments?
Payment is gross and deductible on a paid basis
