CT Revision Notes Flashcards
(13 cards)
two options for trading losses?
- offset against CY & PY total profits
- offset against future total profits
is QCD preserved for trading losses?
- CY & PY offset does not preserve QCDs
- future years offset preserves QCDs
offset against CY & PY of trading losses?
- must use against all profits (wasting QCDs)
- unused losses are carried forward to future years
offset against future years of trading losses?
- partial claim is available so QCDs aren’t wasted
- restriction on carry forward losses
restrictions on carry forward losses?
capped at
- 5m + 50% of excess of total profit (if deductions allowance is claimed)
- 50% of losses available (if no claim is made)
bear in mind, the excess is the excess of TOTAL PROFITS, before deduction of QCDs
how do you perform carry forward of losses?
you carry it forward against future years, excluding this current year
what happens if loss is made in final 12 months?
- TLR
- carry back of losses 36months (not 12m like other carry back)
- LIFO basis
L in TLR stands for LIFO!
options for NTLR losses?
- offset against PY NTLR
- offset against CY profits
- offset against future profits (can preserve QCD
how is a property loss handled?
- offset automatically against total profits in CY
- no partial claim
- any excess is carried forward
how is expenditure on laboratory handled for r&d?
100% FYA
100% FYA on all capital expenditure
what costs relating to subcontractors are eligible R&D expenses?
unconnected subcontractors = 65%
connected subcontractors = lower of: costs incurred by subcontractor and amount paid to subcontractor
what order are deductions offset when there is overseas income?
- offset against UK income first
- offset against o/s income with lowest tax rate first
