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17 Cards in this Set
- Front
- Back
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How to spot 'De-grouping charge' |
Both companies in Gains group Transfer of assets at Nil gain nil loss Disposal within 6 months of nil gain nil loss |
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How to qualify for 100% SSE relief: |
10%+ holding for 12 months
Trading company |
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Corp tax - Calculate proceeds on disposal |
Sales proceeds Less Cost Less Indexation allowance Less Roll-over relief (sometimes) Gain |
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How to calculate Indexation allowance |
Cost to purchase x (RPI at Disposal - RPI at Acquisition) / RPI at Acquisition |
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How to calculate RDEC - if they elect for the tax regime: |
Total qualifying R&D expenditure @ 13% = RDEC
Add to Trading profits Deduct from Corp tax |
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Order of Trading Loss relief for companies: |
Set order: 1. Current year total profits 2. Prior year total profits 3. Carry forward against total profits |
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Trading Terminal Loss - 'Covid Special': |
Losses Between 1 April 2020 to 31 March 2022
Carry back 3 years |
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Maximum Group Relief |
Lower of: - Losses company hasn't us - Profits other companies haven't yet relieved
Detailed: - Any loss it hasn't used itself (Untilised losses) - Any profits sub company hasn't already relieved using its own losses (Unrelieved profits) |
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Other losses types: |
Can by relieved against ANY profit type Property losses = Total profits NTLR Deficits = Total profits - you can choose how much to relieve |
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Capital losses relief |
Capital losses = relieved against chargeable gains only |
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How to calculate trading profits in longer periods: |
1. Adjust the trading profits 2. then time apportion |
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How to split other profits for longer periods: |
Chargeable gains = which period it occurred NTLR and Property = Accruals basis i.e timing apportioning |
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Loss group requirements |
UK company 75% Direct 75% Indirect |
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What is not qualifying R&D expenditure? |
Overheads - even for the lab Computer hardware? |
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How to calculate Degrouping charge: |
Proceeds Less Cost Less Indexation allowance Degrouping charge SSE on Gain = Degrouping charge exempt |
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Corp tax - How to calculate Roll over relief: |
Roll over relief = Bal fig. between Gain and Taxable now Taxable now = Proceeds not reinvested |
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When must a company pay Corporation tax in installments: |
Large or Very large company
Large = Profit £1mil+ Varge large = Profit £20mil+ Corp tax liability = £10k+ |
