Скачать или смотреть ACCA TX Course - Chapter 18: Corporation Tax - Chargeable Gains for Companies (Part 1)

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In Chapter 18, the focus is on chargeable gains for companies. There are both positive aspects and some challenges to consider. The good news is that calculating chargeable gains for companies is quite similar to how it works for individuals, generally following the formula of proceeds minus costs equals gains. However, there are key differences that will be highlighted.

The chapter outlines how chargeable gains for companies are computed, requiring a sale consideration, incidental costs, and allowable expenditure. There is a reference to an “unindexed gain,” which marks a significant difference from individual calculations. Companies are allowed an additional cost known as the indexation allowance, which adjusts the original cost for inflation over time. It's essential to know that indexation can increase the original cost and enhancement expenses, and specific rules regarding indexation will be tested in exams.

Indexation provides relief by compensating for inflation’s impact on chargeable gains, but it has a crucial limitation: it has been frozen since December 2017, meaning no further adjustments can be made after that date. This detail will be important when dealing with indexation factors in exams.

Regarding capital losses, companies can handle them similarly to individuals, as current year losses can be set off against current gains and carried forward against future gains. However, capital losses cannot be offset against other forms of income. For example, if a company incurs a capital loss of 10,000, it should utilize this against any gains, and if there are remaining losses, they can be carried forward. Overall, while the topic has some complexities, it remains manageable.


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