Hello everyone, welcome to ACCA taxation video lectures brought to you by Accountancy to Comm. We are going to start corporation tax in this video lecture. So far, we have covered income tax, capital gains tax, and inheritance tax. When we started income tax, I told you that we would spend a lot of time explaining it so that we can spend less time studying corporation tax. Most of the things we have seen in income tax are also applicable to corporation tax, such as trading profit, capital allowances, property income, and interest income. Therefore, we do not need to go into detail about what we have already seen. The lectures on corporation tax will be shorter because there isn't much new information. I will quickly go over the areas and explain how to calculate corporation tax. For this video lecture, I am using F6 lecture notes, but this is relevant for both F6 and P6. If you are a P6 student, you will find similar information in your P6 notes after finishing this lecture. Now, let's talk about corporation tax pro forma. Corporation tax is a tax that companies pay on their profits. In the pro forma, we first check trading profits, then interest income, property income, and capital gains. We also deduct qualifying charitable donations from the taxable profits. After deducting all these expenses, we calculate the corporation tax at a rate of 19%. Note one: if companies receive interest on a loan taken for non-trade purposes, we deduct the interest paid on that loan from the interest income. Note two: for trading profits, we follow the same adjustments as we did for income tax. The difference lies in the treatment of capital allowances. In the case of businesses that are not companies, we consider private use of...
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Video instructions and help with filling out and completing Form 8854 Taxation
