Tx notes fa22 Final

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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