The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
When calculating tax numbers for accounts it is important to be clear on when new tax laws should be taken into account.
Where a company is part of a group which produces consolidated accounts, changes in tax laws are a common difference to consider in preparing both the group accounts and the subsidiary accounts. This is often because for calendar year end companies the consolidated accounts are produced before the UK Budget announcement whereas subsidiary accounts are prepared later in the year. Hence, disclosure of changes affecting future years may be needed in the subsidiary accounts.
Given that most tax law changes that are announced are prospective in nature, this is mainly relevant from a deferred tax perspective. Preparers must consider what laws will apply when deferred tax balances unwind in future periods. For example, with the recent changes in UK corporation tax rates, companies have had to recalculate deferred tax balances based on the new lower rates. See the Computation of corporation tax guidance note for details of the latest rate changes.
See Example 1.
For clarity, this guidance note refers to changes in tax rates which are consistent with the accounting standards, however exactly the same principles apply to other changes in tax law which affect the company’s income tax liabilities and therefore any such changes should be considered in light of the guidance below. For additional discussion on assessing the implication o
**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
The substantial shareholding exemption (SSE) provides a complete exemption from the liability to corporation tax on the gains generated from qualifying disposals of shares and interests in shares by qualifying companies. Conversely, if losses are generated by the disposal and the SSE conditions are
This guidance note considers the capital gains tax implications where shares are sold in exchange for new shares.The consideration paid by a purchasing company to the shareholder(s) for their shares in a target company could be in the form of either:•new shares in the vendor in exchange for shares
Class 1 and Class 1AClass 1 and Class 1A are the categories of NIC that can be charged on expenses reimbursed and benefits provided to employees. These classes are mutually exclusive. A benefit cannot be subject to both Class 1 and Class 1A NIC. Three requirements must be met before Class 1A NIC is
Business asset disposal relief (previously known as entrepreneurs’ relief) is a capital gains tax (CGT) relief that allows business owners with chargeable gains on qualifying business assets to pay CGT at a rate of 10%. For disposals made on or after 11 March 2020, the relief is available on up to
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.