AAT L4 Business Tax (UK Corporation Tax)

Question 1

The UK corporation tax rate for companies with augmented profits over £250,000 for the financial year 2023 is:

Accepted Answer

25%

Answer

19%

Answer

20%

Answer

30%

Question 2

Augmented profits for corporation tax purposes are calculated as:

Accepted Answer

Profits chargeable to corporation tax plus exempt dividends received from non-associated companies

Answer

Trading profits only

Answer

Total taxable income minus capital allowances

Answer

Profits per the accounts before any tax adjustments

Question 3

For UK corporation tax, the small profits rate applies to companies with augmented profits below:

Accepted Answer

£50,000

Answer

£100,000

Answer

£250,000

Answer

£500,000

Question 4

Marginal relief for corporation tax is available to companies with augmented profits:

Accepted Answer

Between £50,001 and £250,000

Answer

Below £50,000

Answer

Above £250,000

Answer

Above £500,000

Question 5

For corporation tax purposes, dividends received from UK companies are generally:

Accepted Answer

Exempt from corporation tax

Answer

Taxable as trading income

Answer

Taxable at 19%

Answer

Taxable but only at the small profits rate

Question 6

The accounting period for UK corporation tax purposes cannot exceed:

Accepted Answer

12 months

Answer

6 months

Answer

9 months

Answer

18 months