Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

PTX > Corporation Tax: Taxable Total Profits > Flashcards

Corporation Tax: Taxable Total Profits Flashcards

1
Q

Who pays corporation tax?

A

UK resident companies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Scope of corporation tax

A

Worldwide income
And gains
(For the accounting period)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

When is a company resident in the UK

A

Incorporated

Or ‘centrally managed and controlled’

In UK

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Total income and gains from a company aka

A

TTP

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

TTP

A

Taxable total profits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Max accounting period for corporation tax purposes

A

12m

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

CT: When does accounting period start?

A

When C starts to trade
(Or receive income CT chargeable)

Or when prev AP ends

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

CT: When does AP end

A

12m after beginning of AP

Or if sooner:
End of C’s period of account
When C ceases to trade

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What happens for CT if C’s period of account is more than 12m

A

First 12m is 1 AP
Remainder is a 2nd AP

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Trading income: Are dividends paid allowable deductions from profit?

A

No

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

CT: Are dividends received exempt?

A

Yes

But may impact on payment dates of CT

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Trading income =

A

Tax adjusted trading profits
Minus capital allowances

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Capital allowance available for assets privately used by a director or employee of the company

A

Full capital allowances available on all assets
(But taxable benefit in kind may arise on the director/employee)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Are assets qualifying for 100% FYA for sole traders available for company CT

A

Yes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

FYA availability on new (not second hand) plant and machinery
For use in a designated enterprise zone

A

100%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Allowance for capital expenditure not covered by super deduction, AIA or FYA

A

18% WDA

17
Q

WDA

A

Writing down allowance

18
Q

AIA amount

A

200k

19
Q

CT Super amount deduction for
New and unused plant and machinery
In the main pool
(Other than cars)

A

130%

20
Q

CT super deduction availability dates

A

1 April 2021
To 31 March 2023

21
Q

Is 100% FYA time apportioned for short accounting periods

A

No

22
Q

Is the 130% super deduction time apportioned for short accounting periods

A

No

23
Q

How is rental income from UK properties taxed?

A

Accruals basis

24
Q

CT:
Is interest payable
On a loan
To acquire or improve property
An allowable expense against property income?

A

No

25
Q

CT: Relief for:
Loan
To acquire or improve property

A

Loan relationship rules

26
Q

CT: How is interest taxed?

A

Accruals basis

27
Q

What do loan relationship rules determine?

A

Whether interest payable/receivable is classified as
Trading or non-trading

28
Q

Allowability if interest is classified as trading

A

Allowable
Or taxable or part of trading income

29
Q

Allowability if interest is classified as non-trading

A

Allowable
Or taxable as part of NTLR

30
Q

Loan relationship rules: Income (interest receivable): Trading

A

Only if trade is lending money
E.g. banks

31
Q

Loan relationship rules: Income (interest receivable): Non-trading

A

Any other interest receivable when trade not lending money (I.e. not trading)
E.g. repayments of CT

32
Q

Loan relationship rules: Expenses (interest payable): Trading

A

Overdraft interest

Interest payable
On loans
To purchase
Plant and machinery

Interest payable
On loans/debentures
To fund
Daily operations

33
Q

Loan relationship rules: Expenses (interest payable): Non-trading

A

Interest payable on
Loan(s)
To buy
A let property

Interest payable
On loan(s)
To buy
Other companies/investments

Interest payable
On overdue
Corporation tax

34
Q

Exempt assets for companies

A

Same (as STS I think)

Except:
Gilt-edged securities

Plus:
Goodwill created
On or after
1 April 2022

35
Q

How is CT gain calculated on individual chargeable assets for companies

A

Same as individuals

But companies don’t get AEA

36
Q

How do companies receive relief for charitable donations

A

Deducting amount paid when calculating taxable total profits

Made gross
So no grossing-up required

37
Q

How do companies receive relief for charitable donations: Name

A

QCD

38
Q

QCD

A

Qualifying charitable donations

39
Q

Basis for reliving QCDs

A

Cash paid
(Not accruals)

PTX (14 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions