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TX Accumulated Knowledge > E Reliefs > Flashcards

E Reliefs Flashcards

1
Q

Does goodwill in a company qualify for relief/

A

Not for a company, does for an individual

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2
Q

Difference between rollover relief for a comapny vs an individual?

A

Rollover relief for company has indexation allowance

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3
Q

A claim for rollover relief?

A

Claim must be made within four years of the end of the accounting period in which the gain arises

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4
Q

Relief for reinvesting in depreciating assets company vs individual?

A

Company and individual has the same treatment

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5
Q

How is current year relief set off?

A

Against total profits before qualifying charitable donations of the current accounting period

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6
Q

Current year relief treatment?

A

he claim must be for the whole loss, and must be made within two years of the end of the loss-making accounting period

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7
Q

What happens to losses remaining after set off against current year?

A

Carried back to the preceding 12 months, and set against total profits before qualifying charitable donations.

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8
Q

When can prior year relief only be claimed?

A

This claim can only be made after a claim for current year loss relief

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9
Q

What is carry forward relief?

A

Losses can be carried forward indefinitely, and do not require a current year or prior year claim to be done first

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10
Q

When must a carry forward relief be made?

A

Within two years of the end of the accounting period in which the loss is relieved

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11
Q

Can property business losses be carried back?

A

FUCK NO

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12
Q

What comes first, property business losses or trading losses when setting stuff of?

A

Property business losses

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13
Q

How are property business losses relieved?

A

Against same accounting period and then future accounting periods

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14
Q

How are capital losses set off?

A

Against current and then future chargeable gains

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15
Q

Interacting with trading loss relief (what is dealt with first)

A

Capital loss (current and brought forward)

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16
Q

Interacting with trading loss relief (what is dealt with second)

A

Trading losses brought forward

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17
Q

Interacting with trading loss relief (what is dealt with third)

A

Current property business loss

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18
Q

Interacting with trading loss relief (what is dealt with last)

A

Current and later trading losses

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19
Q

How can group relief claims be restricted?

A

So that the surrendering company retains sufficient losses to bring its own augmented profits down to the lower limit

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20
Q

What is meant by group relief?

A

Losses of a surrendering company against the profits of one or more claimant companies for the corresponding accounting period.

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21
Q

Surrendering company in group relief can surrender?

A

Can surrender any amount of its current period trade losses, unrelieved property business losses and unrelieved qualifying charitable donations

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22
Q

When can brought forward trading and business property losses be surrendered for group relief?

A

If the surrendering company is unable to use the loss

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23
Q

What is assumed in a claimant company in group releif?

A

The claimant company uses any of its own current period losses first, even if such a claim is not made

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24
Q

What are profits against which losses can be group relieved?

A

total profits of a claimant company after deducting the claimant’s b/f unrelieved trading losses, current period trading losses and charitable donations

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25
Q

Where in the computation is group relief deducted?

A

After QCD

26
Q

What is the maximum group relief for a corresponding accounting period?

A

Lower of:
Loss of surrendering company
Taxable total profits of claimant company

27
Q

When should group releif be claimed?

A

Within two years of the end of the accounting period in which the loss is relieved

28
Q

How many chargeable gains group can a company be apart of?

A

One chargeable gains group

29
Q

Can a non-UK company be in a chargeable gains group?

A

Yes

30
Q

Deemed cost in intragroup transfer for a company?

A

Cost + indexation

31
Q

Excess charitable donations?

A

QCD - property business profits

32
Q

Calculate loss of surrendering company (group relief)?

A

Trading losses + brought forward losses

33
Q

Calculate taxable total profits of claimant company (group relief)?

A

Trading profits - brought forward losses

34
Q

What relief is not available for group relief?

A

Unrelieved capital losses

35
Q

What is the relationship between surrendering and claimant company?

A

Surrendering owns claimant

36
Q

Is trading loss brought forward included in current period group relief?

A

No

37
Q

Optimal group relief allocation steps?

A

Calculate lower and upper limit by dividing by associated companies

Allocate most loss relief to the highes tax rate (which is value between upper and lower limit)

38
Q

Carry forward group relief for a surrendering company?

A

A surrendering company can only surrender carried forward losses it can’t deduct from its own profits for the current period

39
Q

Carry forward group relief for a claimant company use?

A

Must use its own current period and brought forward losses to the fullest extent possible

40
Q

How is carry forward relief for a claimant company set against taxable profits?

A

After all other reliefs for current period but before relief for any amounts carried back from later periods

41
Q

Loss relief if previous year was for 9 months?

A

Year before that has total profit * 3/12 as the loss relief

42
Q

Does POCN apply to group accounts?

A

It doesn’t, just individual accounts

43
Q

Calculate tax saved from loss relief (carry forward and group relief)?

A

Total profits @ rate - taxable profits @ 25% - (£250000-taxable profits * 3/200)

44
Q

Calculate tax saved from loss relief (current year and carry back)?

A

Loss relief @ tax rate (if txable profits in upper or lower limit)

Loss relief @ tax rate - ((£250000-taxable profits) *3/200)) ((if taxable profits in marginal relief)

45
Q

Calculate tax saved from loss relief (carry back relief for year-end 2023)?

A

Loss relief @ 19%

46
Q

What determines the form of relief when looking at tax saved?

A

The taxable profit, unless 2023

47
Q

Dividends received and corporation tax?

A

Are exempt

48
Q

Chargeable gain in LPOA time?

A

Always included at the final year

49
Q

Capital allowances in an LPOA?

A

Always for the final year and time apportioned

50
Q

Main factor in choosing group relief or loss relief/

A

The tax rate

51
Q

When QCD don’t exceed total profits?

A

There is no excess

52
Q

Tax saved calculation for group relief?

A

Group relief * rate (26.5% OR 25% OR 19%)

53
Q

When can group relief start being claimed?

A

Only when company joins thje group

54
Q

Calculate intra-grpup transfer in group relief?

A

Proceeds - deemed cost. (ALWAYS INCLUDE INDEXATION)

55
Q

When is group relief only available if company leaves a group?

A

Arrangements for sale made

56
Q

Who is responsible for making a group relief claim within 2 years (surrendering or claimant)?

A

The surrendering company

57
Q

Where must capital losses be set off against?

A

ONLY CHARGEABLE GAINS

58
Q

Base cost of a new warehouse if relevant claim was made?

A

Indexed original cost

59
Q

Are building costs included for capital allowance in corporations?

A

No

60
Q

When it’s a 130% item?

A

Balacning charge is done

61
Q

What is meant by the rent receivable?

A

Rent for the quarter

62
Q

When is SBA time-apportioned?

A

From the date of purchase

TX Accumulated Knowledge (35 decks)

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