Taxation Case study Essay Example | Topics and Well Written Essays - 2500 words

Taxation Case sight - Essay ExampleThe pension contributions made wholly and exclusively for the business purposes are deductible in the history stay in which the payment is made. However the company may opt to spread it everyplace a consummation o up to five years, if such contributions have exceeded 210 share of the previous years contribution.The not bad(p) gains and losings are, generally, calculated in the same way for companies as for individuals. While the net gains are include in the chargeable income, there is no taper relief that applies for individuals getable to companies. No annual resistance is usable to companies.Trading losses can be manipulate off against all some other income and gains of the accounting period, with provisions available for carry back and carry forward. Capital losses can be set off only against capital gains.This allowance is given at the rate of 4 percent on the eligible expenditure on the construction of industrial constructs or stru ctures that are used for qualify purposes. For guideing this allowance, the building should have been in actual use at the end of the chargeable period. A claim of light speed percent can be made if the expenditure is incurred on the construction of certain commercial buildings, including hotels placed in enterprise zones.For capital expenditure on certain be and machinery with at least 25 years of massive working life and with a minimum expen... deduction of 25% is available for declamatory companies.The pension contributions made wholly and exclusively for the business purposes are deductible in the accounting period in which the payment is made. However the company may opt to spread it over a period o up to five years, if such contributions have exceeded 210 percent of the previous years contribution.Capital GainsThe capital gains and losses are, generally, calculated in the same way for companies as for individuals. While the net gains are included in the chargeable incom e, there is no taper relief that applies for individuals available to companies. No annual exemption is available to companies.Trading Losses Trading losses can be set off against all other income and gains of the accounting period, with provisions available for carry back and carry forward. Capital losses can be set off only against capital gains.Capital AllowancesThe following are some of the capital allowances available to the companiesWriting Down Allowance for Industrial BuildingsThis allowance is given at the rate of 4 percent on the eligible expenditure on the construction of industrial buildings or structures that are used for qualifying purposes. For claiming this allowance, the building should have been in actual use at the end of the chargeable period. A claim of 100 percent can be made if the expenditure is incurred on the construction of certain commercial buildings, including hotels located in enterprise zones.Allowances on Plant and MachineryWriting Down Allowance at the 25 percent on reducing balance method is available for capital expenditure incurred on plant and machinery.For capital expenditure on certain plant and machinery with at least 25 years of long working life and with a minimum expenditure of