PTP Tax Tip No 40 - Minimising the tax bill for a company with a 30 September year end

Q: My client company made taxable profits of £32,000 in the year to 31 September and paid a dividend of £10,000 on 9 January 2006. The taxable profits included a chargeable gain of £20,000 realised in February 2006. To calculate the corporation tax I have taken £16,000 of the profits as falling before 1 April 2006 and the other £16,000 after 31 March 2006. This gives £26,000 at 19% and the other £6,000 at an average rate of 16.33% so the total tax bill is £5,920.

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