S455 tax in the first year of trading

S455 tax in the first year of trading

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I need some help with ovedrawn DLA at the end of the longer accounts period for the first year of trading. When there is an outstanding loan is section 455 tax applied for each return separately (essentialy meaning double payment)? If not, how to compete CT600A? Accounts period: 20/05/2012 - 31/05/2013; Tax return period 1) 20/05/2012 19/05/2013; Tax return period 2) 20/05/2013 31/05/2013 On a side note: the loan was partially repaid after 9 months and 1 day from the end of the first period but before 9 months and 1 day from the end of the second period (24/02/2014). There was still an outstanding balance at the end date of each tax return period.

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By johngroganjga
03rd Mar 2014 11:20

First of all there can be no double payment.  S455 tax only arises on the increase in the loan in the accounting period.  But yes S455 must be dealt with separately on each return.  That just follows from the answers you have to give to the questions on the return.

 

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By Omega BAS
03rd Mar 2014 11:25

Thank you!

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