18 Introduction to corporation tax

Question 1

Whats is chargeable accounting period?

Answer 1

A chargeable accounting period (CAP) is the period for which a charge to corporation tax is made. It is neverlonger than 12 months

Question 2

When does a CAP start?

Answer 2

When a company starts to trade and when the previous AP ends

Question 3

When does a CAP end?

Answer 3

Twelve months after the beginning of the accounting period•the end of the company’s period of account, and •the date the company begins or ceases to trade

Question 4

Companies resident in the UK are chargeable to corporation tax on?

Answer 4

All profits (i.e. income and chargeable gains) wherever they arise (i.e. on worldwide income and gains)

Question 5

What is the TTP?

Answer 5

All sources less QCDs
i.e. Trading profits
Interest
property 
Misc
Chargeable Gains

Question 6

How are QCDs treated?

Answer 6

Allowable, paid gross