Calculation of Tax Liability

See Also

Losses and allowances | Order of preparation

Select from the following headings:

Background | Developing the schedule | Completing the Schedule | Standard Sub-Schedules | Carry Forward | Related Errors

The Calculation of Tax Liability is the main schedule of a multiple trade computation. It brings together information from other schedules for all trades to create the corporation tax calculation.

Generally, data should not be entered directly into the Calculation of Tax Liability schedule. Instead, data should be entered in the supporting schedules, following the guidance in the Order of preparation help page.

There are, however, some data-entry cells to enable you to handle items not already entered elsewhere in the file (for example, some reliefs such as Community investment relief).

Suppression of blank rows
Entries and sub-totals which are not used or are not appropriate will be hidden when the schedule is printed or viewed in final mode.

Long period of account
The long period of account variants of this schedule repeat income, reliefs and tax due for the second accounting period.

Order of offset of reliefs

Where there are both a non trade deficit brought forward and expenses of management, the order in which these are offset may be set by means of the Offset brought forward deficits before management expenses selector provided at the foot of this schedule. This is set to Yes by default.

Capacity to bring back trade losses, NTLR deficits and excess capital allowances (from 2006)

The capacity to bring back trade losses, NTLR deficits and excess capital allowances under s260, CAA 2001 from later periods will be displayed in review mode above the Tax payable calculations. These values will be carried forward and used in the following period Losses and allowances schedule to validate where too much has been shown as carried back.

Where the period is long, time apportionment may not give the correct figure for the capacity, and so the relevant rows will be suppressed. In the following period, a review note will be displayed in the Losses and allowances schedule, advising that the carry back capacity will need to be manually reviewed.

Tax credits

A reduction for your tax obligation may be available for R&D, films and land remediation. In addition it is also possible to claim first year tax credits. In this situation, the amounts should be entered manually on to the Calculation of Tax Liability schedule.

The R&D, land remediation and first year tax credits calculated based on the figures you enter will feed through to the Losses and allowances schedule.

The film tax credit will go straight through to the return.