Computation of corporation tax

Produced by a Tolley Corporation Tax expert

Corporation Tax

Guidance

Companies pay corporation tax on the taxable total profits (TTP) generated in a chargeable accounting period (CAP).

To ascertain whether the entity is within the charge to corporation tax, see the Charge to corporation tax guidance note.

For more information on the type of profits which are subject to corporation tax, see the Taxable Total Profits (TTP) guidance note.

Chargeable accounting periods

Companies are liable to corporation tax for each CAP. The CAP is usually the period for which the company makes up a set of statutory financial statements. However, the accounting period for tax purposes can sometimes be different.

Short accounting periods

Where a company makes up its accounts for less than 12 months, the accounting period for the company will cover the same short period. Various limits and allowances, eg the capital allowance WDA will be scaled down accordingly, on a time apportionment basis. For most practitioners, no additional action will be necessary as the required adjustments will be carried out by tax compliance software.

See Example 1.

Long periods of account

For

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Corporation Tax

Premiums on the grant or surrender of a lease

Premiums on the grant or surrender of a leasePremiums on the grant of a lease ― outlineWhen a property investor grants a lease, potentially this could be done on the basis that the tenant pays a premium for the initial grant of the lease, in addition to also paying rent over the term of the lease.

14 Jul 2020 12:58 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax Read more

Value Added Tax

Reverse charge ― buying in services from outside the UK

Reverse charge ― buying in services from outside the UKThis guidance note covers the reverse charge that applies to services that have been bought in from outside the UK. For an overview of VAT and international services more broadly, see the International services ― overview guidance note. For

15 Dec 2020 14:02 | Produced by Tolley Read more

Employment Tax

Short-term business visitors (STBVs)

Short-term business visitors (STBVs)What is a short-term business visitor?An STBV for UK tax purposes is an individual who performs duties for a non-UK employer and as a part of those duties has been asked to spend a short period working in the UK. There is a common misconception that there is

14 Jul 2020 13:40 | Produced by Tolley in association with Gill Salmons Read more

UU��ֱ��