Corporation tax under dual taxation treaty?

[dog4]

Hi - I have had a browse of the forum but have not found an answer. Perhaps someone could advise?

I'm preparing UK Ltd company accounts. Due to EU rules governing place of business, activities of the business in Sweden were deemed (by the Swedish tax authorities) to fall under Swedish corporation tax, which was paid during the past financial year.

- When UK accounts are now prepared, how is this Swedish tax payment included in the accounts? Literally which box in the form (if known)...

- Though no UK corp tax will be due this year due to carried over losses from prior years, how should the Swedish tax payment be recorded such that it can be carried forward to a future year when UK taxes may be payable (i.e. offset under the dual taxation treaty)?

Very grateful for any insights.

[Mazin]

Include the Swedish tax payment in the foreign tax section of the UK company accounts. For offsetting future UK taxes, record it as a foreign tax credit under the dual taxation treaty provisions.