E TTP Computation Comprehensive

Question 1

How to calculate trading income?

Answer 1

Adjusted profits - capital allowances

Question 2

What happens with other income and trading income in TTP?

Answer 2

Added to get TTP

Question 3

What is included in other income?

Answer 3

Interest income from non-trade relationship
Property business income
Miscellaneous income
Net chargeable gains

Question 4

What other income is represented by accruals?

Answer 4

Interest income from non-trade relationship

Property business income

Miscellaneous income

Question 5

How does relief for interest payable on a loan differ between income and corporation?

Answer 5

Corporation: Relieved under loan relationship

Income: treated as a tax reducer

Question 6

In trading loan relationships and adjustment of profits?

Answer 6

No adjustment of profits is required

Question 7

In non-trading loan relationships and adjustment of profits?

Answer 7

Adjustment of profits is required

Question 8

Does capital allowance have a private use element in corporation tax?

Answer 8

No

Question 9

Depreciation in operating profit?

Answer 9

Added

Question 10

Capital allowances in operating profit?

Answer 10

Deducted

Question 11

Bank interest receivable and trading profit?

Answer 11

Added to trading profit

Question 12

Loan made for non-trading purposes? and operating profit?

Answer 12

Not added or subtracted (exempt). However it is added to total taxable profits