Computing Taxable Total Profits (4)

Question 1

When may carry back reliefr be used?

Answer 1

After first relieving the trading loss in the accounting period of loss

Question 2

Carry back relief must be in full?

Answer 2

Yes

Question 3

When must carry back relief be claimed?

Answer 3

Within 2 years of the end of the accounting period in which the loss is made

Question 4

If the accounting period preceding the period of loss is short (carry back relief)

Answer 4

Loss should be carried back for a full 12 months on a LIFO basis

Question 5

Profits of earlier loss (carry back relief)

Answer 5

Must be time apportioned

Question 6

Terminal loss relief carry back period?

Answer 6

Extended to 36 months for losses incurred inthe twelve months prior to the cessation of trading

Question 7

Terminal loss relief done before QCD?

Answer 7

YES

Question 8

When is there carry forward relief?

Answer 8

Loss remains unrelieved after current year and carry back claims have been made

Question 9

When must a carry forward relief claim be made?

Answer 9

Within 2 years of the end of the accounting period

Question 10

Calculate amount of losses carried forward?

Answer 10

Trading losses b/f - offset in current year + current year trading loss

Question 11

What is meant by net amount assessable?

Answer 11

Interest receivable - (non-trading relationship)

Question 12

Debt recovery and taxable total profits?

Answer 12

Increases taxable total profits

Question 13

Dividends received in adjusted trading profit?

Answer 13

Deducted

Question 14

Capital profit in adjusted trading profit?

Answer 14

Deducted

Question 15

Capital allowances in adjusted trading profit?

Answer 15

Deducted

Question 16

Charitable donation in adjusted trading profit?

Answer 16

Added

Question 17

Depreciation in adjusted trading profit?

Answer 17

Added

Question 18

Chargeable gain in corporation tax computation?

Answer 18

Added

Question 19

QCD in corporation tax computation?

Answer 19

Deducted

Question 20

Interest received from bank and on loan notes?

Answer 20

Non-trade interest income

Question 21

Loan to purchase a property to be let out?

Answer 21

Non-trade interest expense

Question 22

Loan to buy shares in another company?

Answer 22

Non-trade interest expense