Flashcards in Chapter 2 - Computation of CT Deck (5)
Financial Year 2018
Companies pay CT for an accounting period on their taxable total profits. CT is calculated based on the rates set relating to a financial year. The FY runs 1 April to 31 March. The 2018 CT rate is 19%.
Financial Year Straddle
Where an AP straddles two FYs, the period is split into two notional APs. Where the rate of CT is the same for both notional periods, we apply the rate to the profits of the whole period.
FY Straddle Cont.
Where the rate changes between notional periods, the profits are apportioned between each notional period and the respective rates of CT are applied
FY 16: 20%
FY 17: 19%