Corporation Tax

Question 1

define period of account

Answer 1

any period for which a company prepares its accounts - usually 12 months long

Question 2

define accounting period or AP

Answer 2

is the period for which a charge to corporation tax is made

Question 3

a company is a UK residence if

Answer 3

it is incorporated in the UK or incorporated elsewhere but centrally managed in the UK

Question 4

taxable total profit formula

Answer 4

total profits - qualifying charitable donations

Question 5

augmented profits formula

Answer 5

taxable total profits + dividends received from non-associated companies

Question 6

what are the lower and upper limits for the FY

Answer 6

LL - 50,000
UP - 250,000

Question 7

what are the corporation tax rates

Answer 7

19% & 25%

Question 8

conditions for companies to be associated

Answer 8

one company must control the other or both companies must be controlled by the same person

Question 9

what are the dates the 130% super deduction is available for

Answer 9

1 April 2021 and 31st March 2023 - available on new main pool assets

Question 10

features of carrying forward loss relief

Answer 10

• loss is carried forward and offset in future accounting periods
• loss is set against total profits before QCD’s
• claim must be made within 2 years of the end of the accounting period in which the loss is relieved

Question 11

current year trading relief

Answer 11

trading losses are offset against total profit before QCD’s of the same accounting period - claim must be made for the whole loss within 2 years of the end of the loss making period

Question 12

carry back relief

Answer 12

trading loss offset against total profit before QCDs of the past 12 months on a LIFO basis - claim must be made within 2 years of the end of the loss making period

Question 13

can property losses be carried back

Answer 13

no

Question 14

capital gains group

Answer 14

parent must have 75% control in subsidiaries and at least 50% in sib-subsidiaries

Question 15

group relief group

Answer 15

parent must have 75% in subsidiaries and 75% in sub-subsidiaries

Question 16

when must corporations file their self-assessment tax return

Answer 16

within 12 months after the end of the accounting period

Question 17

when must corporations pay any tax due

Answer 17

within 9 months and 1 day after the end of the accounting period

Question 18

until when must records and documents be retained for a company

Answer 18

6 years after the end of the accounting period

Question 19

ammendments to return time period

Answer 19

HMRC - 9 months after filing
company - 12 months after filing

Question 20

claim for overpayment relief time

Answer 20

4 years from the end of the accounting period

Question 21

penalties for late filing

Answer 21

3 months - 100 fixed
3-6 months - 200 fixed
6-12 months - additional 10% of tax outstanding
more than 12 months - 20%

Question 22

penalty for failing to keep records

Answer 22

3000

Question 23

large company payment instalment dates

Answer 23

first payment 14th of 7th month
last payment 14th of 16th month