Lecture 5

Question 1

1. What is corporation tax?
2. When is the finacial year? E.g 2023
3. What is period of account?
4. What is accounting period?

Answer 1

1. The tax that companies pay on their profits
2. Starts 1 April that year and ends 31 march next year
   E.g 1 April 2023 - 31 march 2024
3. Period of account = time a compnay prepares it finacial accounting usually 12 months but can be longer or shorter
4. Accounting period = when coroportation tax is charged. Can be more than 12 months. If it more it split into two accounting periods

Question 2

How do your workout trading income

Answer 2

• trading losses brought forward
  + property income
  + non trading loan income
  + intangible assets income
  + Chargeable gains
  6. - Capital losses

Then you have total
Then minus :
- property business loses
- loan deficits
- charitable donations
- other trading losses