Corporation tax

Question 1

Chargeable company

Answer 1

UK resident is assessable on its worldwide income

Resident = central management in UK or UK incorporated

Question 2

Calculating Taxable Trading Profits

Answer 2

In accruals basis except for net chargeable gains.
Dividend income is not chargeable to corporation tax.

NO PRIVATE USE ASSETS ADJUSTMENT

Question 3

Non trade loan relationship

Answer 3

Interst income
()
=
NTLR

Question 4

Disposal of shares

Answer 4

Order of

Same day, prior 9 days, share pool

Question 5

Indexation allowance

Answer 5

Stop at Dec 2017

Cannot create / increase a loss but can make a profit become NIL

Question 6

Trading losses - Ongoing

Answer 6

CY - against total profits (all or nothing claim, will waste your QCD)
Carried back - Against profits in the prior 12 months (after doing a claim in current year, all or nothing so may waste QCD)
Carried forward - Against total profits (can select amount so not waste QCD no time constraint)

Question 7

How to decide on relief

Answer 7

Earlier relief of losses = payback from HMRC

Question 8

Trading losses - on cessation

Answer 8

Can carry back 36 months on LIFO (PY then year before then year before)