Trading vs non-trading tax

[blobbo@onetel.net.uk]

In preparing a CT600 form :-

If the company makes a trading loss when taking into account equipment depreciation, but a small non-trading gain which would be more than offset by the trading loss, does the company have to pay Corporation Tax on the non-trading loss (bank interest) even though it traded at a loss in the tax year?

What I am getting at basically is whether trading and non-trading profits/losses are treated separately for a particular year.

Thanks in anticipation for any responses

[demetris]

the answer is yes. Interest received cannot be used to offset trading losses.

Demetris Savva BA FCCA
http://www.tax-accounting-london.info

[blobbo@onetel.net.uk]

Thanks - sorry if this is what you've said, but put another way, can trading losses be used to offset interest received in the same year, so that no Corp Tax is payable?

[demetris]

the answer is no- you cannot offset trading losses against interest; therefore, a small tax might be due.

Demetris Savva BA FCCA
http://www.tax-accounting-london.info
constantinesavva@accamail.com
Special Report on how to save tax sent automatically to weekly tax and buisiness advice newsletters.

[blobbo@onetel.net.uk]

Many thanks for that, Demetris.