BTC - Corporation Tax Rates

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi,

In the BTC exams there is a page of information at the front, with capital allowances, capital gains & corporation tax info.

The corporation tax can be charged at a rate of 19% or 30 %. Could anyone please explain when each of these rates are applied? What limits are used to determine each rate?

Most of the time it's 30% but I just want a clear understanding in case it happens to be 19% for next weeks exam.

Thanks

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    BTC - Corporation Tax Rates
    K wrote:
    Hi,

    In the BTC exams there is a page of information at the front, with capital allowances, capital gains & corporation tax info.

    The corporation tax can be charged at a rate of 19% or 30 %. Could anyone please explain when each of these rates are applied? What limits are used to determine each rate?

    Most of the time it's 30% but I just want a clear understanding in case it happens to be 19% for next weeks exam.

    Thanks

    K

    19% CT is chargeable on profits up to 300k

    30% CT is chargeable on profits up to 1.5m - less MRR

    >1.5m full 30% rate.

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:BTC - Corporation Tax Rates

    Thank you for that Dean.

    Good luck for any exams you have next week! I think BTC is going to be my worst one, so many rules to remember!


    K :D
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:BTC - Corporation Tax Rates

    K

    Remember to time apportion the ranges if the profits are for an accounting period less than a year.

    eg a six month accounting period would mean that your reach 30% (less MRR if appropriate) with taxable profits above £150k.

    However the ranges will be printed at the beginning of the exam paper so you don't need to learn them.

    HTH
    Em
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:BTC - Corporation Tax Rates

    Also watch out for associated companies - these affect the profit limits. For example if you have 1 associated company the £300,000 limit becomes £150,000.

    Kind regards
    Steve
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:BTC - Corporation Tax Rates

    You're welcome K!

    Best of luck.

    Regards

    Dean

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