income tax rules v/s corporation tax rules

by **Incredulum** on Fri Oct 07, 2011 5:53 pm

A trading partnership with mixed individual and corporate partners has to compute its profits differently according to income tax rules and corporation tax rules (or otherwise state that there is no difference).

I'm obviously being stupid on a Friday afternoon, but I'm struggling to think of any such difference. Any ideas?

by **section 44** on Sun Oct 09, 2011 9:08 am

I could be mistaken but isn't there a difference in the point at which capital allowances are deducted (i.e. deduction against trading profits for individuals and deductions against profits chargeable to corporation for companies)?

Loan relationships.

by **Incredulum** on Sun Oct 09, 2011 1:56 pm

Loan relationships are an obvious difference, but they are not in point for the computation of trading profits - the accruals basis applying for any trading deduction.

Capital allowances in respect of assets used in a trade are offset against trading profits for CT purposes. Any trading loss arising may then be offset against profits arising under any other heading.