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Where Taxpayers and Advisers Meet

Corporation Tax On Reserves

loosmoret
Posts:2
Joined:Wed Dec 16, 2015 11:06 am
Corporation Tax On Reserves

Postby loosmoret » Wed Dec 16, 2015 11:14 am

Hi,

Would be great to get some help on corporation tax.

Do company reserves from the previous year (on which corporation tax has been paid) form part of the taxable profit in the current year?

I want to leave retained profit in the business but do not wish this to be subject to corporation again.

Many Thanks,

Tom

amingram
Posts:18
Joined:Fri Nov 28, 2008 1:47 pm

Re: Corporation Tax On Reserves

Postby amingram » Wed Dec 16, 2015 11:55 am

Hi Tom

Prior year P&L reserves are not taken into account when calculating the corporation tax for the current year - it is only the current year profit (as adjusted for tax items) that are subject to corporation tax.

Regards

Mark
Director
Wesram Ltd

loosmoret
Posts:2
Joined:Wed Dec 16, 2015 11:06 am

Re: Corporation Tax On Reserves

Postby loosmoret » Wed Dec 16, 2015 11:59 am

Hi Mark,

Thank you for your help.

Regards,

Tom


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