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Q4 Corp tax - Coggle Diagram
Q4 Corp tax
TTP
Trading income
Adjustments to
Disallow exp - incl dons to pol party, add back QCD too
Allow exp (look out for items such as:
R&D revenue exp:
230% for SMEs (H)
Large cos: 13% R&D exp ADDED to TTP and then deducted as a tax credit below the 19% CT comp.
Less capital allowances
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AIA - P&M, computers, integral features - shared across all 51% group cos.
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-
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Less QCD -
Cash basis, split if long POA
NTLRs
If deficit, a deduction to TTP (you choose how much), prior 12mths NTLR (all or nothing); cf vs future total profits; or group relief
-
Corporate gains
Gains groups
Pros:
Share gains
direct ownership = 75%; indirect = 50%
Transfers NGNL (rule, not optional!)
Group rollover relief
-
-
-
Losses
Must be offset vs gains of same AP, excess cfwd.
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Admin
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Large (£1.5mil) - 14th mth 7,10,13,16
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V large (£20mil) - 14th mth 3,6,9,12
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Exemptions and reliefs
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SSE:
- When a company sells shares in a:
- trading co
- OG holding was >10% (across group)
- held for more than 12mths of the last 6+ yrs
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Trading losses
Less restricted than ST, normal rules: all vs total profits (inc gains) in CY first, PY 2nd; future 3rd.
Terminal loss:
- Trading loss of the last 12mths
- Used vs CY first
- Used vs 3 PY total profits, starting most recent
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Long POA
Adjustments to income first, apportion over 12mths/rest
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Timing of payments by instalments:
- Large: 1,2,3 - normal then the 4th bal fig.
V large: 1,2,3 - normal then the 4th bal fig.
Overseas aspects
DTR
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Foreign dividends:
Most are exempt (unless exam tells you otherwise)
Usual DTR rules (tax on gross amount) compare UK vs overseas tax.
DTR = lower.