BTC- Corp Tax Charges on income ?

System

I am just reviewing all my notes b4 the exam Tues and come across something on my course notes which i just dont recognise !

On the calculation of corp tax it has charges on income to be deducted

what is this ! i cant seem to find it in any books.....

Am i having a blonde moment.....

Good luck to everyone for exams next week- fingures crossed

System

Re:BTC- Corp Tax Charges on income ?

i have had same problem! its on nov 04 exam paper task 2.3 and its for £3500 the only thing for that amount is Gift Aid, but how can Gift aid be a charge on income?? my tutor doesn't know
Can anyone help

System

Re:BTC- Corp Tax Charges on income ?

Under business taxation, gift aid is a charge on income (just means you take it off) apparently there are other charges on income but in the BTC paper the only one you deal with is gift aid.

Annette

System

Re:BTC- Corp Tax Charges on income ?

There used to be several items which were treated as charges on income, both trade and non trade. Most of these are disappearing as the result of the reform of corporation tax. Gift Aid is the only one left that would be on your syllabus. The only time this becomes tricky is when you are claiming S. 393A(2) loss relief (previous 12 months) and there was a Gift Aid contbn. in that year. It is possible to lose that non trade charge as the c/b claim is for all trade losses in the previous 12 months, before non trade charges and non trade charges cannot be carried forward as could trade charges when they used to exist. Simple, eh?

System

Re:BTC- Corp Tax Charges on income ?

Thanks for all your replies.
That makes it a bit clearer... Was starting to think it was my imagination !

Good luck everyone for BTC tomorrow - fingers crossed !