Corporation Tax Relief - Companies Flashcards
(6 cards)
1
Q
what is the formula for taxable total profit?
A
TTP = trading profits + property income + chargeable gains - qualifying deductions
2
Q
what does group relief do?
A
it allows one company’s trading losses to be used against another’s taxable profit
3
Q
who qualifies for group relief?
A
uk companies in a 75% group
4
Q
what are the conditions to apply for group relief?
A
- must be within the same group (more than 75% ownership)
- Both must be UK residents
5
Q
what does terminal loss relief do?
A
It allows trading losses from the final 12 months to be carried back 3 years against profits
6
Q
what are the conditions for terminal loss relief?
A
- trade must have permanently ceased
- loss relief applied to most recent years first
