Preparing my first CT600 for a property company (no other trade) that received rental income and incurred mortgage interest.
I've got the ultimate tax liability correct but as its my first property CT600 it would be useful to have some reassurance that I've completed all the boxes correctly and claimed the relief/loss in the correct way, or if not then where I'm going wrong. I've googled extensively, read the CT600 guide (and associated guides) and similar questions on here, so if anyone is able to send me a suitably anonymised CT600 and computations for a similar company so that I can compare that would be ever so helpful, please PM me if so.
But, in summary, the company had say £80k rental income, £30k mortgage interest, profit of £50k. My understanding is that:
- There would be £nil trading turnover (box 145) and £nil trading profits (box 155)
- There would be £80k income from property business (box 190 and 235), as the £30k interest would not be deducted from this.
- The £30k loss (deficit) from the non-trade loan relationship would be shown at boxes 275, 295 and 795
- The £30k adjusted Case I loss (£50k profit per accounts, less £80k income from land & buildings) would be claimed against the property income (general profits) of £80k, reducing the profits chargeable to CT down to £50k (boxes 300 and 315)
I use BTC and complete the property supplementary schedule. BTC seems happy with the computations but I'd prefer to fully understand if it's correct or not.
Hope that all makes sense!