Flashcards in Corporation Tax Deck (10):
Corporation Tax-this is paid by UK resident companies and gains for a chargeable accounting period.
The total income and gains of a company is known as their 'taxable profits'...
Company is resident in the UK if
-it is incorporated in the UK
-it is centrally managed and controlled in the UK.
UK resident companies are chargeable to UK corporation tax on their worldwide profits.
The chargeable accounting period is usually the companies accounting period but can't exceed twelve months.
When does an accounting period end.
12 months after the beginning of the accounting period..
The end of the company's period of account.
The company begins/ceases to trade.
The date the company ceases to be residenttttttttt of
the company's total income and gains chargeable to corporation tax.
Non trading loan relationships (investment interest)
Less Qualifying Charitable Donation...
Net profit per the accounts
Taxable inco(not elsewhere in the accounts)
Non trading income taxes elsewhere
Adjusted Trading Incomeee...
No private use res. for comp
(for individuals the private use is removed from the capital allowances eg MP * 0.18 * 0.5)...
Capital allowances are given for chargeable accounting periods...
Taxed on the accruals basis
Relief is given under the loan relationship rules...
The LRR determine the treatment of interes.
Loan relationship rules apply to interest payable and receiveable.
Interest is paid and received.
To determine the type of interest must determine whether its trading or non trading.
Chargeable gainsfor companies.
Corporation tax is charged on any chargeable gains made by a company.