舊課選看沖刺串講jenny講義第7revision corporation tax

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Lossreliefs

Trading e

Other eandnetgainsTotalprofit

CurrentperiodCarryback

Carryforward(restricted)Less:QCDs

TaxableTotalProfits(TTP)

XXX(X)

(X)

(X)

(X)X

Format

Tradinglossesrelief:AgainsttotalprofitCurrentperiod

Carryback(12m,2APs,LIFO)Terminalloss

Last12monthslossagainsttotalprofitsoftheprevious36months(LIFO)Carryforward

RestricttoQCDs

Tradehas esmallornegligible

Note:Changeofownership+Majorchangeinnature/Revivalintrade(<5years)Nocarryforward/carryback

Timelimit

Claimsforcurrentperiodandcarrybacklossrelief

mustbemadewithintwoyearsoftheendoftheaccountingperiodinwhichthelossaroseClaimsforcarryforwardlossrelief

mustbemadewithintwoyearsoftheendoftheaccountingperiodinwhichthelossisrelievedOtherlossreliefs

Propertylosses

Currentyearrelief:Againsttotalprofits

Carryforward:Againsttotalprofits,restricttoQCDs

Capitallosses

Currentperiod(automatic):againstcapitalgains

Carryforward(automatic):againstfirstavailablegains

Deficitsonnon-tradingloanrelationship

PartialclaimsarepossibleCurrentperiod:againsttotalprofit

Carryback:Againstinvestment e,PartialclaimsarepossibleCarryforward:Againsttotalprofit

Closeandinvestmentcompanies

Close definition

UKresident

Undercontrolofeither(50%withassociate:relatives,businesspartners)fiveorfewershareholdersor

anynumberofitsshareholdingdirectorsIssuesforclosecompanies

Goodwilldisposal:noentr-relief

Interestexpensesforbusiness:deductfromtotal e

Loanstoparticipators

Shareholders

Outstandingonduedate

Penaltytax

N/A

BenefitstoparticipatorsLoanstoparticipators

(9mand1day)

32.5%

Loanrepaid/canceledafterward

RepaymentfromHMRC

Dividend e

Benefitstoparticipators

Employeeandshareholder

Onlyshareholder(notanemployee)

Normalbenefitcalculation

Allowableexpenses(includingNIC)forcorporationtax

Treatedasdividend e

DisallowableexpenseCT

Newpurchase:NoCA

Oldassetasagift:treadedasdisposal(balancingcharges,Capitalgain)

Investment -Reliefformanagementexpenses

Currentperiod:deductedfromtotalpro?ts

Carryforward:Excessamount

Grouprelief:Excessamount

Grouptypes

Types

Definition

Features

51%group

>50%c/fofpreviousAPcommoncontrol(bysame

,related)

Instalment(￡1.5m/groupnumber)AIA(￡1m,allocationorder)

75%lossgroup

eachlevel>75%

effectiveinterest>75%

Lossrelief(UKresidentmembers)

Currentyearloss

Consortiumrelief

Together>75%

75%>Each>5%

Currentperiodrelief&broughtforwardMaxlimit:Lowerof

%consortium ’sresults

Consortiummember’sresultCorrespondingperiods

CGgroup

Eachlevel>75%

Effectiveinterest>50%

Benefits③

Currentyearlossrelief

SurrenderingCo.

ClaimantCo.

Tradeloss,interestdeficits:anyamount

QCDs,property,managementexpenses:excess

Limit=TTP-tradingloss-b/floss

Timeapportion:correspondingAP(differentc/f,new,leaving )

Carryforwardgrouprelief

SurrenderingCo.

ClaimantCo.

afterdeductingfromitsowntotalprofitsoftheAP

afterusingitsownlossestothefullestextent

possible

OverseasPE

GroupreliefextendstoUKbranchesofoverseascompanies,aslongastheprofitsofthebrancharewithinthescopeofUKCT

Claim

Madewithintwoyearsoftheendoftheclaimant ’sprofit-makingaccountingperiod.

Itisineffectiveunlessanoticeofconsentisalsogivenbythesurrendering .Capitalgaingroup-benefit

①Transferassetsatnogainornoloss.(cost+IA)

Degrou

charge

IfacquiringCo.leaving<6years

Charge=MVattransfer-indexedcost

Paidbyselling

Considersubstantialshareholdingexemption

②Gainsorcapitallossestransfer ly

Onlycurrentg/l

ToreduceTTPfortaxpaymentpurpose(instalment)

③Grouprolloverrelief(intangibleasset)Tradesuccession

Normaltransfer

Anylossesremain

AssetstransferredatMV

Balancingadjustmentarises

Capitalgainsarise

Succession

Anylossestransferagainstprofitfromsametrade

AssetstransferredatTWDV

Nobalancingadjustmentarises

Nocapitalgainsarise

Tradetransferredbetweencompaniesinsubstantiallythesameownership(75%).

Overseas

DTR:Foreachsource

UK goingabroad

Tradingviaabranch

Settingoverseassubsidiary

Profit/lossbelongstoUKcompanies

ExemptionsfromCT(electionforallPEs)

Overseasprofitanddividend:exempt

Losses:cannotbesetagainstUKprofits

Transferprice

Forsalesandcommercialloans:AdjusttoMVifwithinthechargetoUKcorporationtax

Exemptions:SMEsarenormallyexempt

IssuesshouldbeagreedinadvancewithHMRCControlledforeigncompanies

ResidentoutsideUK,controlledbyUKresidents(individualorcompanies)

CFCch