Paper F6 Revision Proformas

Income TAx comPuTATIon
Mr. A Tax Year 2010/11

Non Savings Tax adjusted trading profit Employment Income Property Income Bank Interest 10080 Building society Interest 10080 Other Interest received gross Dividends 10090 Total Income Less: Reliefs: Qualifying interest Loss Reliefs: Net Income Less Personal Allowance (Note 1) Taxable Income (6,475)
W1 W4 W5
PAPer F6 December 2011 examinations
Savings
Dividends
Note 1 Standard PA abated if Adjusted Net Income > 100,000 Note 2 PAA 65 + 9,490 75 + 9,640 Abated if Adjusted Net income > 22,900 Note 3 Adjusted Net Income = Net Income less gross gift aid payments and gross personal pension contributions
For latest course notes, free audio & video lectures, support and forums please visit
TAx cAlculATIon
Non Savings 37,400 150,001 + Savings (Note 5) (After Non savings) 37,400 150,001 + Dividends (After Non Savings & Savings) 37,400 150,001 + @ 10% @ 421/2% 37,401 - 150,000 @ 321/2% @ 20% @ 50% 37,401 - 150,000 @ 40% @ 20% (Note 4) @ 50% 37,401 - 150,000 @ 40%
Less
Tax deducted @ source Dividends Bank Interest Building society interest PAYE
Tax Payable / (Repayable)
Note 4 Extend Basic rate band by gross contributions to charity under the Gift Aid scheme and gross contributions to a private pension scheme. Note 5 A special starting rate of 10% applies on savings income only, if taxable non-savings income < 2,440
TAx cAlculATIon
W1 Tax adjusted trading profit
Adjusted Profit Less Capital allowances Tax adjusted trading profit
W2 W3
Assess using Current Year Basis / opening year rules / change of accounting year rules / closing year rules
W2 Adjusted profit
Net Profit per Accounts Add back Expenses Disallowed for tax Deduct Income assessed elsewhere or not taxed Adjusted profit
W3 Capital Allowances
% = business use General Pool Special rate Expensive car Private use Short life asset Allowances Pool Asset X X
WDV b/f Additions qualifying for AIA

- long life assets - integral features of a building - thermal insulation on a business building [MAXIMUM 100,000 p.a] - Balance goes into special rate pool
Additions qualifying for AIA

- Plant & machinery (Balance of the MAXIMUM 100,000 p.a. if not on above) Balance goes into general pool Other additions not qualifying for AIA/FYA Motor cars 111 - 160g/km Motor cars > 160g/km
Disposals WDA @ 20% WDA @ 10% WDA restricted (3,000 pa) Balancing (allowance) / charge Additions qualifying for FYA Motor cars 110g/km FYA @ 100%
WDV c/f
TAx cAlculATIon
W4 Employment Income
Salary Bonus Benefits
less Allowable Deductions Employment Income
W5 Property Income
Rental Income accruing Less: Allowable expenses Wear & tear allowance for furnished property Property Income in the year Less: Property losses b/f Property Income assessed Note: (a) (b) Property may be classified as furnished holiday letting If a lodger in main residence : Lower of: normal calculation (above) or Rental Income Less: rent a room relief Property Income X (4,250) (X) X (X) (X) X (X) X
(c)
Premium on short lease ( 50 years) Taxable amount = Premium n = term of lease 51 n 50
cAPITAl GAIns TAx - IndIvIduAls

1 Basic computation
Disposal proceeds Less: incidental costs of disposal Net proceeds Less: Acquisition costs Enhancement expenditure Capital Gain Less reliefs Revised Capital gain Note: X (X) X (X) (X) X (X) X
Special rules for share disposals, part disposals, chattels, damaged and destroyed assets. Gain may be reduced by Entrepreneurs, Rollover, Holdover, Gift, Incorporation or Principle Private Residence Relief
Capital Losses
Disposal proceeds Less: incidental costs of disposal Net proceeds Less: Acquisition costs Enhancement expenditure Capital loss X (X) X (X) (X) (X)
Summary
Revised Capital Gains in the year Less: Capital Losses in the year Net Capital Gains in the year Less: Capital losses brought forward Net Capital Gains Less: Annual Exemption Taxable Gains CGT @ 18% / 28% Note (6) Due X (X) X (X) X (10,100) X X 31/1/12
Note (6) CGT rates depend upon taxable income; If taxable income 37,400 CGT rate = 18% If taxable income > 37,400 CGT rate = 28%
corPorATIon TAx comPuTATIon

ABC Limited
Accounting period ending
Tax adjusted trading profit W1 Interest Receivable W5 Property Income W6 Overseas Income W7 Chargeable Gains W8 less Gift Aid payments Taxable Total Profits Corporation Tax W9 Due Date Filing Date
Note: Dividends received from UK and overseas companies are not taxable

W1 Tax adjusted trading profit
Adjusted profit W2 less Capital Allowances W3 Industrial Buildings allowances W4
Tax adjusted trading profit
W2 Adjusted Profit
Net Profit Before Taxation per Accounts Add back Expenses Disallowed per tax Deduct Income assessed elsewhere or not taxed Adjusted Profit

W3 Capital Allowances
WDV b/f Additions qualifying for AIA

- long life assets - integral features of a building - thermal insulation on a business building [MAXIMUM 100,000 p.a] - Balance goes into special rate pool
General Pool Special rate Expensive car Short life asset Allowances Pool X X
Additions qualifying for AIA

- Plant & machinery (Balance of the MAXIMUM 100,000 p.a. if not on above) Balance goes into general pool Other additions not qualifying for AIA / FYA Motor cars 111 - 160g/km Motor cars > 160g/km
Disposals WDA @ 20% WDA @ 10% WDA restricted (3,000 pa) Balancing (allowance) / charge Additions qualifying for FYA @ 40% Motor cars 110g/km FYA @ 100%
WDV c/f

W4 Industrial Buildings allowances Full industrial use:
WDA = Cost x 1% p.a., if in industrial use on the last day of the accounting period On Sale - No WDA or balancing adjustment in the accounting period of sale.
Non-industrial use
Notional allowance for accounting period where non-industrial use on last day of the accounting period On Sale - No WDA or Balancing adjustment in the accounting period of sale

W5 Interest receivable
Interest receivable less Interest payable on non trading loans
10
W6 Property Income
Rental Income less Allowable Expenses (including wear & tear for furnished property) Also Premium on short lease ( 50 years)
Taxable Amount = Premium
51 n 50
n = term of lease
W7 Overseas Income
Oversees income grossed up for withholding tax
W8 Chargeable Gains
Disposal Proceeds Less incidental costs of disposal Net Sales Proceeds Less Acquisition costs Enhancement Expenditure Unindexed Gain Less Indexation allowance Chargeable Gain less reliefs Less Capital loss Capital loss b/f Net Chargeable Gains (to go into the corporation tax computation)

Capital loss:
Disposal proceeds less Incidental costs of disposal less Acquisition costs Enhancement Expenditure Capital loss
11
Note: Special Rules for shares, chattels, part disposals, damaged & destroyed assets. Gain may be reduced by Rollover or Holdover Relief

W9 Corporation Tax
Augmented profits = Taxable Total Profits + Franked Investment Income (FII) Financial Year Limits (adjust for short accounting period and / or associated companies) Compare Augmented profits to limits Calculation of Tax
W10
12
TTP tax rate less Double tax relief Lower of UK tax overseas tax Corporation tax payable
X (X) X
FII = UK and overseas dividends from non-associated companies [<50%] x 10090
W10
0 21% = Small profits rate 300,000 28% less marginal relief 1,500,000 28% = Main rate
marginal relief
Fraction [Limit Augmented profits]
Taxable Total Profits 'Augmented profits'

Paper F6 Revision Proformas

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Paper F6 Revision Proformas

Uploaded by

Copyright:

Available Formats

Income TAx comPuTATIon

Mr. A Tax Year 2010/11

PAPer F6 December 2011 examinations

PAPer F6 December 2011 examinations

Tax Payable / (Repayable)

PAPer F6 December 2011 examinations

WDV b/f Additions qualifying for AIA

Additions qualifying for AIA

PAPer F6 December 2011 examinations

less Allowable Deductions Employment Income

Premium on short lease ( 50 years) Taxable amount = Premium n = term of lease 51 n 50

cAPITAl GAIns TAx - IndIvIduAls

PAPer F6 December 2011 examinations

corPorATIon TAx comPuTATIon

PAPer F6 December 2011 examinations

corPorATIon TAx comPuTATIon

PAPer F6 December 2011 examinations

Tax adjusted trading profit

corPorATIon TAx comPuTATIon

PAPer F6 December 2011 examinations

WDV b/f Additions qualifying for AIA

Additions qualifying for AIA

corPorATIon TAx comPuTATIon

PAPer F6 December 2011 examinations

corPorATIon TAx comPuTATIon

PAPer F6 December 2011 examinations

Taxable Amount = Premium

corPorATIon TAx comPuTATIon

PAPer F6 December 2011 examinations

corPorATIon TAx comPuTATIon

PAPer F6 December 2011 examinations

FII = UK and overseas dividends from non-associated companies [<50%] x 10090

You might also like