UK Property Business - Adjustments

Use UK Property Business – Adjustments to adjust the UK property figure from the company’s accounts, to arrive at the adjusted profit or loss figure. This adjusted figure, after the application of capital allowance and loss claims, will be included in the computation of the company’s corporation tax liability.

Profit/(Loss) Per Accounts

Enter the profit (or loss) and any prior year adjustment from the accounts.

Additions

Use this section to add back any expenses which appear in the accounts but which are not allowable corporation tax deductions.

Select from the ‘Addition type’ menu the category of expense to be added back.

There are 19 categories of expenses included on the menu, including:

  • Amortisation
  • Capital expenditure
  • Charitable donations
  • Depreciation
  • Disallowable entertaining
  • Loss on sale of fixed assets
  • Non-trade interest paid

Use Description to enter details of the Add back.

Enter alongside Description the amount to be added back.

There is no limit to the number of Addition rows you can create. A fresh row will appear when all existing rows have been wholly or partly completed.

To delete a row, click on the cross to the left of Addition type.

The details and amounts entered in this section will be included in Computation Preview.

Deductions

Use this section to deduct any income which is either non-taxable or taxable as something other than UK property income.

Select from the Deduction type menu the category into which the deduction falls. The menu includes:

  • Directors’ remuneration previously disallowed
  • Non-trade interest received
  • Profit on sale of fixed assets
  • Staff remuneration previously disallowed
  • Other deductions

Use Description to enter details of the deduction.

Enter alongside Description the amount to be deducted.

There is no limit to the number of Deduction rows you can create. A fresh row will appear when all existing rows have been wholly or partly completed.

To delete a row, click on the cross to the left of Deduction type.

The details and amounts entered in this section will be included in Computation Preview.

Adjusted profit/(loss) before capital allowances

This figure is equal to the profit/(loss) per accounts, adjusted for Additions and Deductionsand will be included on Computation Preview.

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