E Reliefs

Question 1

Does goodwill in a company qualify for relief/

Answer 1

Not for a company, does for an individual

Question 2

Difference between rollover relief for a comapny vs an individual?

Answer 2

Rollover relief for company has indexation allowance

Question 3

A claim for rollover relief?

Answer 3

Claim must be made within four years of the end of the accounting period in which the gain arises

Question 4

Relief for reinvesting in depreciating assets company vs individual?

Answer 4

Company and individual has the same treatment

Question 5

How is current year relief set off?

Answer 5

Against total profits before qualifying charitable donations of the current accounting period

Question 6

Current year relief treatment?

Answer 6

he claim must be for the whole loss, and must be made within two years of the end of the loss-making accounting period

Question 7

What happens to losses remaining after set off against current year?

Answer 7

Carried back to the preceding 12 months, and set against total profits before qualifying charitable donations.

Question 8

When can prior year relief only be claimed?

Answer 8

This claim can only be made after a claim for current year loss relief

Question 9

What is carry forward relief?

Answer 9

Losses can be carried forward indefinitely, and do not require a current year or prior year claim to be done first

Question 10

When must a carry forward relief be made?

Answer 10

Within two years of the end of the accounting period in which the loss is relieved

Question 11

Can property business losses be carried back?

Answer 11

FUCK NO

Question 12

What comes first, property business losses or trading losses when setting stuff of?

Answer 12

Property business losses

Question 13

How are property business losses relieved?

Answer 13

Against same accounting period and then future accounting periods

Question 14

How are capital losses set off?

Answer 14

Against current and then future chargeable gains

Question 15

Interacting with trading loss relief (what is dealt with first)

Answer 15

Capital loss (current and brought forward)

Question 16

Interacting with trading loss relief (what is dealt with second)

Answer 16

Trading losses brought forward

Question 17

Interacting with trading loss relief (what is dealt with third)

Answer 17

Current property business loss

Question 18

Interacting with trading loss relief (what is dealt with last)

Answer 18

Current and later trading losses

Question 19

How can group relief claims be restricted?

Answer 19

So that the surrendering company retains sufficient losses to bring its own augmented profits down to the lower limit

Question 20

What is meant by group relief?

Answer 20

Losses of a surrendering company against the profits of one or more claimant companies for the corresponding accounting period.

Question 21

Surrendering company in group relief can surrender?

Answer 21

Can surrender any amount of its current period trade losses, unrelieved property business losses and unrelieved qualifying charitable donations

Question 22

When can brought forward trading and business property losses be surrendered for group relief?

Answer 22

If the surrendering company is unable to use the loss

Question 23

What is assumed in a claimant company in group releif?

Answer 23

The claimant company uses any of its own current period losses first, even if such a claim is not made

Question 24

What are profits against which losses can be group relieved?

Answer 24

total profits of a claimant company after deducting the claimant’s b/f unrelieved trading losses, current period trading losses and charitable donations

Question 25

Where in the computation is group relief deducted?

Answer 25

After QCD

Question 26

What is the maximum group relief for a corresponding accounting period?

Answer 26

Lower of: Loss of surrendering company Taxable total profits of claimant company

Question 27

When should group releif be claimed?

Answer 27

Within two years of the end of the accounting period in which the loss is relieved

Question 28

How many chargeable gains group can a company be apart of?

Answer 28

One chargeable gains group

Question 29

Can a non-UK company be in a chargeable gains group?

Answer 29

Yes

Question 30

Deemed cost in intragroup transfer for a company?

Answer 30

Cost + indexation

Question 31

Excess charitable donations?

Answer 31

QCD - property business profits

Question 32

Calculate loss of surrendering company (group relief)?

Answer 32

Trading losses + brought forward losses

Question 33

Calculate taxable total profits of claimant company (group relief)?

Answer 33

Trading profits - brought forward losses

Question 34

What relief is not available for group relief?

Answer 34

Unrelieved capital losses

Question 35

What is the relationship between surrendering and claimant company?

Answer 35

Surrendering owns claimant

Question 36

Is trading loss brought forward included in current period group relief?

Answer 36

No

Question 37

Optimal group relief allocation steps?

Answer 37

Calculate lower and upper limit by dividing by associated companies Allocate most loss relief to the highes tax rate (which is value between upper and lower limit)

Question 38

Carry forward group relief for a surrendering company?

Answer 38

A surrendering company can only surrender carried forward losses it can't deduct from its own profits for the current period

Question 39

Carry forward group relief for a claimant company use?

Answer 39

Must use its own current period and brought forward losses to the fullest extent possible

Question 40

How is carry forward relief for a claimant company set against taxable profits?

Answer 40

After all other reliefs for current period but before relief for any amounts carried back from later periods

Question 41

Loss relief if previous year was for 9 months?

Answer 41

Year before that has total profit * 3/12 as the loss relief

Question 42

Does POCN apply to group accounts?

Answer 42

It doesn't, just individual accounts

Question 43

Calculate tax saved from loss relief (carry forward and group relief)?

Answer 43

Total profits @ rate - taxable profits @ 25% - (£250000-taxable profits * 3/200)

Question 44

Calculate tax saved from loss relief (current year and carry back)?

Answer 44

Loss relief @ tax rate (if txable profits in upper or lower limit) Loss relief @ tax rate - ((£250000-taxable profits) *3/200)) ((if taxable profits in marginal relief)

Question 45

Calculate tax saved from loss relief (carry back relief for year-end 2023)?

Answer 45

Loss relief @ 19%

Question 46

What determines the form of relief when looking at tax saved?

Answer 46

The taxable profit, unless 2023

Question 47

Dividends received and corporation tax?

Answer 47

Are exempt

Question 48

Chargeable gain in LPOA time?

Answer 48

Always included at the final year

Question 49

Capital allowances in an LPOA?

Answer 49

Always for the final year and time apportioned

Question 50

Main factor in choosing group relief or loss relief/

Answer 50

The tax rate

Question 51

When QCD don't exceed total profits?

Answer 51

There is no excess

Question 52

Tax saved calculation for group relief?

Answer 52

Group relief * rate (26.5% OR 25% OR 19%)

Question 53

When can group relief start being claimed?

Answer 53

Only when company joins thje group

Question 54

Calculate intra-grpup transfer in group relief?

Answer 54

Proceeds - deemed cost. (ALWAYS INCLUDE INDEXATION)

Question 55

When is group relief only available if company leaves a group?

Answer 55

Arrangements for sale made

Question 56

Who is responsible for making a group relief claim within 2 years (surrendering or claimant)?

Answer 56

The surrendering company

Question 57

Where must capital losses be set off against?

Answer 57

ONLY CHARGEABLE GAINS

Question 58

Base cost of a new warehouse if relevant claim was made?

Answer 58

Indexed original cost

Question 59

Are building costs included for capital allowance in corporations?

Answer 59

No

Question 60

When it's a 130% item?

Answer 60

Balacning charge is done

Question 61

What is meant by the rent receivable?

Answer 61

Rent for the quarter

Question 62

When is SBA time-apportioned?

Answer 62

From the date of purchase