Corp Tax - Accounting periods

Corp Tax - Accounting periods

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Bit of a blank on this!

Company was incorporated 22 April 2010.

Its year end is 31 May.

I am making up accounts for the period from 22 April 2010 till 31 May 2011.

The company acquired an old factory 2 July 2010. 

The company's intention is to demolish factory and develop into nursing home.  It will be a trading company.

As at 31 May 2011 the factory is financed by DLA.

In the accounts to 31 May 2011 the legal costs have been added to Land & Buildings.  However the acounting fees have been charged to P&L.

The company is in the process of planning application.

What are the CTax accounting periods? 

Replies (3)

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By blok
27th Oct 2011 15:56

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Gut feeling is that the company has not commenced any CT accounting periods as yet.  We just write HMRC and advise them of this?

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By George Attazder
27th Oct 2011 16:11

Agreed...

... there are no accounting periods until trade commences or the company comes otherwise within the charge to CT (ie bank interest).

While there are no accounting periods, if HMRC issue any notices to file CT Returns, a Return is required in response to the notice for the period specified in the notice (ie ignore the accounts), which will obviously be nil.

For completeness of response (although I don't suppose the points have escaped you), any revenue costs that have been incurred can be charged as a loss on day 1 of trading.  Any expenditure within the development costs on F&Fs/integral features can be treated as expnditure incurred on day 1.

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By blok
27th Oct 2011 16:31

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Thanks George,

will just write to HMRC to keep them in the loop.

Point noted about pre trading revenue and capital costs.

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