Chapter 23 Corporation tax: income and gains

Question 1

Trading profits

Answer 1

Key differences are:

1. There are no private use adjustments
2. Any interest receivable or payable for a trading reasons is included in trading profit.
3. If the interest is receivable or payable for a non-trading purpose then it is included in interest income.
4. Dividends payable are not an allowable trading expense.
5. Enhanced deductions are available for research and development expenditure if conditions are satisfied.
6. Adjustments may be required in respect of intangible assets, transfer pricing and thin capitalisation