8. Qualifying Charitable Donations For companies to ensure tax relief is achieved on their charitable donations they should make such
payments under the qualifying charitable donations system. The payment is GROSS and deductible
on a paid basis.
Thus in the adjustment of trading profit any such payments should be added back and instead
included as a separate deduction on the Corporation Tax computation.
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9. Dividends Dividends received from
UK and overseas companies are exempt corporation tax and never
included as part of Taxable Total Profits.
Example 1 Westmorland Ltd has the following income and outgoings for the year ending 31 March 2023:
Compute the Taxable Total Profits for the year ending 31 March 2023. You may now attempt Practice Question 19 & 20 £ Tax-adjusted trading profit
1,456,500
Property Income
25,000
Interest receivable
10,000
Chargeable gains
37,500
Capital losses
(2,500)
Dividends from UK companies
14,400
Qualifying charitable donations
(10,000)
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