The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This note provides details on how to calculate quarterly instalment payments (QIPs) for large and very large companies.
The instalment amounts are based on the estimated corporation tax liability of the company’s current accounting period. Therefore, this means that large and very large companies will be required to forecast their tax liabilities as accurately as possible in order to avoid interest charges on underpayments. For accounting periods commencing on or after 1 April 2019, very large companies will need to carry out such forecasts even earlier during the accounting period as their instalment payments must all be paid during the accounting period.
For general details regarding QIPs and determining whether a company is large or very large for this purpose, please refer to the QIPs ― when do they apply? guidance note.
In order to determine the company’s corporation tax liability for the accounting period, it is necessary to estimate the tax that is due on the company’s total taxable profits including:
any liability under CTA 2010, s 455 (loans to participators). For further information on loans that fall within these provisions, please refer to the Loans to participators guidance note
amounts apportioned from controlled foreign companies (CFCs) under TIOPA 2010, s 371BC(1). For further information on CFCs, please refer to the Controlled foreign companies (CFCs) guidance note
Any reliefs that are available to the company should also be deducted as normal to arrive at the company’s estimated total tax liability. For general guidance on the calculation of a company’s corporation tax liability, please refer to the Taxable Total Profits (TTP) and Computation of corporation tax guidance notes.
For those companies making a claim for the research and development expenditure credit (RDEC), the gross RDEC credit is included in the company’s computation of taxable profits. This will increase the corporation tax liability, which, in turn, affects the estimate of quarterly instalments. The RDEC is then applied to discharge the company’s tax liability. However,
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
Why capital losses are importantCapital losses are usually set against the capital gains that arise in the same year as the loss, reducing the total taxable gains for that year. Losses not used in this fashion are normally carried forward to be set against the next available gains.However, in
Usually, allowable capital losses can only be set against chargeable gains. If the losses are not fully utilised against gains in the year in which they arise, the excess is carried forward to use against future gains. See the Use of capital losses guidance note for further details.This rule can be
Where a donor has made a gift of property and continues to use or benefit (or may benefit) from that property in some way, he may have made a gift with reservation of benefit for the purposes of inheritance tax (IHT).However, this will not be the case where:•a donor makes a gift of cash and the
This guidance note provides an overview of the basic principles of inheritance tax, when it is charged and how it is calculated. It contains links and references to other parts of the module where more details can be found.Transfers of valueInheritance tax is based on the concept of a transfer of