Corporate tax losses

A company prepares a set of accounts for the 14 months to 30 June 2024. The adjusted trading profit for this period is £280,000.

How will this period of account be divided into accounting periods and what is the adjusted trading profit for each accounting period?

• 14 months ended 30 June 2024, adjusted trading profit £280,000

• 12 months ended 30 April 2024, adjusted trading profit £240,000 and 2 months ended 30 June 2024, adjusted trading profit £40,000

• 2 months ended 30 June 2023, adjusted trading profits £40,000 and 12 months ended 30 June 2024, adjusted trading profits £240,000

Brown Ltd's accounts for the year ended 31 December 2024 include £10,000 of patent royalties payable for trade purposes to another UK company. The amount actually paid in the year ended 31 December 2024 was £8,500. When calculating the adjusted trading profits which of the following will apply?

• No adjustment would be needed

• £10,000 would be added back as disallowed expenditure

• £8,500 would be added back as disallowed expenditure

• £1,500 would be added back as disallowed expenditure

Chargeable gains are not included when calculating taxable total profits.

• True

• False

A bank deposit account is a non trade loan relationship

• True

• False

Tax exempt foreign dividends are included when calculating the company's taxable total profits.

• True

• False

Z Ltd has an accounting period of the year ended 31 August 2024, how will this be split between Financial Years when calculating the corporation tax liability?

• Full accounting period taxed using FY2024 rates

• 7 months (1/9/23 - 31/3/24) taxed at FY2023 rates and 5 months (1/4/24 - 31/8/24) taxed at FY2024 rates

• 7 months (1/9/23 - 31/3/24) taxed at FY2024 rates and 5 months (1/4/24 - 31/8/24) taxed at FY2025 rates

• Full accounting period taxed using FY2023 rates

A company has taxable total profits of £200,000 for the year to 31 March 2025 and receives dividends of £70,000. What rate of corporation tax will the company pay on its taxable total profits?

• Small profits rate of 19%

• Main rate of 25%

• Main rate of 25% less marginal relief

Alpha Ltd is not a large company. When will the corporation tax liability for its accounting period the 6 months ended 31 August 2024 be due to be paid?

• On or before 31 August 2024

• On or before 31 August 2025

• On or before 1 June 2025

• On or before 1 July 2025

Charley Ltd is required to pay its corporation tax by instalments. When would the payments for the year ended 31 October 2024 be due?

• Two equal instalments payable on 14th November 2024 and 14th February 2025

• Four equal instalments payable on 14th May 2024, 14th August 2024, 14th November 2024 and 14th February 2025

• Four equal instalments payable on 1st May 2024, 1st August 2024, 1st November 2024 and 1st February 2025

• Four equal instalments payable on 14th June 2024, 14th September 2024, 14th December 2024 and 14th March 2025

A company has a trading loss brought forward at 31 March 2024 of £40,000. This trading loss arose in the year ended 31 March 2024. In the year ended 31 March 2025, the company has trading income of £35,000 and property income of £10,000. Assuming that the company wishes to relieve the trading loss carried forward as soon as possible, the company's taxable total profits for the year to 31 March 2025 will be:

• £10,000

• £5,000

• £nil