0 evaluări0% au considerat acest document util (0 voturi)
42 vizualizări2 pagini
The document summarizes changes from the 2010 UK budget that affect corporation tax. Key points include:
1) The normal time limits for corporation tax assessments and claims are decreasing from six to four years from the end of the accounting period.
2) A new failure to notify penalty will apply from April 2010 for companies that do not file tax returns within 12 months of their accounting period end.
3) The annual investment allowance is increasing to £100,000 for expenditures on or after April 2010, with transitional rules for companies with accounting periods spanning this date.
The document summarizes changes from the 2010 UK budget that affect corporation tax. Key points include:
1) The normal time limits for corporation tax assessments and claims are decreasing from six to four years from the end of the accounting period.
2) A new failure to notify penalty will apply from April 2010 for companies that do not file tax returns within 12 months of their accounting period end.
3) The annual investment allowance is increasing to £100,000 for expenditures on or after April 2010, with transitional rules for companies with accounting periods spanning this date.
Drepturi de autor:
Attribution Non-Commercial (BY-NC)
Formate disponibile
Descărcați ca PDF, TXT sau citiți online pe Scribd
The document summarizes changes from the 2010 UK budget that affect corporation tax. Key points include:
1) The normal time limits for corporation tax assessments and claims are decreasing from six to four years from the end of the accounting period.
2) A new failure to notify penalty will apply from April 2010 for companies that do not file tax returns within 12 months of their accounting period end.
3) The annual investment allowance is increasing to £100,000 for expenditures on or after April 2010, with transitional rules for companies with accounting periods spanning this date.
Drepturi de autor:
Attribution Non-Commercial (BY-NC)
Formate disponibile
Descărcați ca PDF, TXT sau citiți online pe Scribd
The normal time limits for Changes affecting the CT600 Corporation Tax are decreasing from six years to four years from the end
Company Tax Return form of the accounting period. There is
now a new normal four-year time limit for assessments and claims, from 1 April 2010, for Capital Gains Tax, Announcements in the March 2010 Budget mean that we will be updating Corporation Tax, Income Tax, PAYE the CT600 Guide Company tax return form guide. The main CT600 Company and VAT. Tax Return form does not need to be updated on this occasion, but you should bear in mind that generally you cannot make a claim under any new proposal For more information go to www.hmrc.gov.uk/about/ until the Finance Bill receives Royal Assent and becomes law. We will update new-compliance-checks.htm CT Online services as quickly as possible. This Budget Insert tells you about some of the main changes affecting Corporation Tax. For further details about Budget measures, the up to date New failure to notify penalty position and the availability of forms go to www.hmrc.gov.uk HMRC is introducing the failure to notify penalty across most taxes when people fail tell us about a relevant obligation, at the Rates of Corporation Tax correct time. The new penalty For the financial year 2010 starting on 1 April 2010 the main and small companies will apply from 1 April 2010 to rates of Corporation Tax remain the same as they were in 2009. You can use the rates a company that has not received announced in the Budget before Royal Assent. a notice to file a company tax return Rates, limits and fractions for financial years starting 1 April and has not told HMRC that they are chargeable to tax within 2009 2010 12 months from the end of their Main rate 28% 28% accounting period. Main rate on ring fence profits* 30% 30% For more information go to Small profits rate 21% 21% www.hmrc.gov.uk/about/ Small profit rate on ring fence profits 19% 19% new-penalties/index.htm
Lower limit £300,000 £300,000
Upper limit £1,500,000 £1,500,000 Publishing details Marginal relief standard fraction 7/400 7/400 of deliberate defaulters From 1 April 2010 under strictly Marginal relief ring fence fraction 11/400 11/400 controlled circumstances, HMRC Rate for unit trusts and can publish the details of people who open ended investment companies 20% 20% are penalised for deliberately evading *Ring fence profits mean the income and gains from oil extraction activities at least £25,000 of tax, if they do not or oil rights in the UK and UK continental shelf. fully cooperate with our investigation. For more information go to www.hmrc.gov.uk/about/ tax-defaulters-q-a.htm Charitable donations relief It was announced in the Budget that charitable donations relief will be extended to qualifying donations made to certain organisations established in the European Union (EU), in Norway or in Iceland. Relief will be available for donations made from 1 April 2010. You will need to show in your tax computations separate totals for qualifying donations to charities established in the UK, and to those established in the EU, Norway or Iceland. A new definition of an organisation eligible for UK charity tax reliefs, applies as from 1 April 2010 and charities will be able to apply to HMRC to confirm that they are eligible. Further guidance is available at www.hmrc.gov.uk/businesses/giving/index.htm
Annual investment allowance Example 1 It was announced in the Budget that the maximum allowance for annual investment A company with a calendar year allowance (AIA) is being increased to £100,000 for expenditure incurred on or after chargeable period from 1 January 2010 1 April 2010. The maximum allowance is proportionately reduced if the accounting to 31 December 2010 would calculate period is less than a year. its maximum AIA entitlement based on: (a) the proportion of a year from However, for companies whose chargeable period spans 1 April 2010, transitional 1 January 2010 to 31 March 2010, rules apply. The rules provide that the maximum allowance is the sum of each that is, 3/12 x £50,000 = £12,500, and maximum allowance that would be found if the actual chargeable period were split (b) the proportion of a year from into two chargeable periods. The first beginning with the first day of the chargeable 1 April 2010 to 31 December 2010, period and ending with the day before the relevant date. The second beginning that is, 9/12 x £100,000 = £75,000. on the relevant date and ending with the last day of the chargeable period. The company’s maximum AIA for this So where a business has a chargeable period that spans the relevant date of the increase, transitional chargeable period would the maximum allowance for that business’s transitional chargeable period is the sum of: therefore be the total of (a) + (b): (a) the maximum AIA entitlement, based on the previous £50,000 annual cap for £12,500 + £75,000 = £87,500. the portion of a year falling before the relevant operative date, and (b) the maximum AIA entitlement, based on the new £100,000 cap for the portion of a year falling on or after the relevant date. Example 2 Please see Example 1 aside. A company with a calendar year chargeable period would have However, the rules also effectively provide that in the part of the chargeable period a maximum entitlement under falling before 1 April 2010, only a maximum of £50,000 of the company’s expenditure the main transitional rule (4) would be covered (in other words the previous AIA limit would apply). Returning of £87,500, but if the company to Example 1 aside, this rule does not affect the business’s maximum AIA for the spent, say, £70,000 in February 2010 chargeable period as a whole (which is £87,500), simply the amount of expenditure and incurred no other qualifying before the relevant start date that may be covered. Please see Example 2 aside. expenditure for the remainder of We will update our systems to accommodate the new maximum allowance the year, the maximum AIA available as soon as possible, but until we do so, you will not be able to send in your to that company would be £50,000. company tax return online if you are taking advantage of the new maximum.
Tax law rewrite
The Corporation Tax Act 2009 (CTA 2009) took effect for accounting periods ending on or after 1 April 2009 and the Corporation Tax Act 2010 (CTA 2010) will take effect for accounting periods ending on or after 1 April 2010. The two acts will eventually require amendments to the CT600 Company Tax Return form (including changes to the statutory references) but we have not made those changes yet. So please continue to complete the form as if there were no amalgamation of UK and foreign source income and, where relevant, as if the statutory references were to the corresponding provisions of CTA 2009 and CTA 2010. More guidance will be given in the CT600 Guide. The table below tells you where you can find the statutory references for supplementary pages CT600A, CT600C, CT600H and CT600I.
Tax law rewrite – supplementary pages
Supplementary page Brief description Statutory references CT600A Loans Paragraphs 1, 2(4) and 8(1) to participators of Schedule 18 to the Finance Act 1998 Chapter 3 of Part 10 of CTA 2010 CT600C Group Group relief – Part VIII of Schedule 18 and consortium to the Finance Act 1998 Part 5 of CTA 2010 CT600H Cross-border Paragraph 3(5) of Schedule 18 royalties to the Finance Act 1998 Sections 911, 912, 914 and 915 of the Income Tax Act 2007 CT600I Supplementary Paragraphs 1 and 8(1) of Schedule 18 charge to the Finance Act 1998 Chapter 5 of Part 8 of CTA 2010